Crude Oil Price Analysis – WTI Bounces as Buyers Defend 200-Day EMA

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen a bit during the early part of the trading session on Tuesday, but has turned around to show signs of life as traders are trying to defend the crucial 200-day EMA. Recently, we’ve seen some calming down of tension in the Middle East, but we’ve been here before, and it’ll be interesting to see whether or not that actually sticks this time.

The light sweet crude oil market had initially shot straight up in the air. We are basically at about the 50% Fibonacci retracement level, so it does make a certain amount of sense that there would be some technical interest in this region. This is an area that should attract a lot of attention from technical traders in general.

Brent Technical Analysis

The Brent market fell to test the $85 level, just above the 200-day EMA, and at this point, the market is likely to continue to pay attention to this area because of all the technical indicators in one spot, being the 50-day EMA and the 200-day EMA, as well as a previous gap, previous consolidation, and a large round, psychologically significant figure. This is an area of confluence that I will pay attention to.

Unfortunately, the oil markets are going to be moving on the latest whims of a few random people in the United States and Iran and what they have to say to the media or in public. If missiles start flying, that obviously will disrupt market supply, or at least the thought of it. But for what it’s worth, despite the fact that missiles have stopped flying, the Strait of Hormuz is still essentially closed.

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