Crude Oil Price Analysis – WTI Bounces Off 50-Day EMA as Strikes Pause

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market has fallen precipitously at the open on Monday, testing the 50-day EMA rather quickly as traders react to the fact that the United States has pared down its strikes at least in the short term, and the Iranians are looking to do much the same. Nonetheless, we still have a situation where the Strategic Petroleum Reserve is at levels not seen in 40 years because so much has been drawn out of it, and one would have to wonder whether or not that influences the market sooner or later. That being said, we’ve seen this movie before, and to believe that suddenly peace is going to break out would be to overlook a lot of different things. The headlines in the Middle East will continue to move these markets.

Brent Crude Oil Technical Analysis

Brent markets have also fallen apart, only to turn around and show signs of life again in an environment that, quite frankly, looks very much the same, testing the 50-day EMA before bouncing. Whether or not that actually plays out that way and it finds that as a floor remains to be seen, but clearly, at this point in time, we’re just moving on the latest headlines. Anytime there’s a headline in one direction or the other as far as tension is concerned, oil markets jump or collapse, take your pick.

I just don’t see how that changes anytime soon. And with that being the case, it’s very difficult to get aggressive and practice any type of risk appetite or risk management in your account, so a very difficult market to trade in. We’ve been all over the place already during the session, and we still are just now getting ready to see Wall Street open up. So with that, I expect a bumpy ride. This is a market where volatility is picking up, not dropping.

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