Crude Oil Price Analysis – WTI Tests $90 Resistance as 50 EMA Holds Support

Crude Oil

The crude oil market continues to see a lot of noise as of late due to the concerns in the Middle East more than anything else, as supply disruptions could become a very real problem for energy supply around the world.

That being said, this is also a market that’s moving on sentiment and the latest headlines coming out of the Middle East, so it is a bit difficult to get aggressive one way or the other.

The 50-day EMA underneath offers support. The $90 level above offers a little bit of psychological resistance.

Brent

The Brent market looks very much the same, with $95 offering resistance over here and the 50-day EMA as well as $90 both offering potential support.

So, with that being said, I believe this is a market that remains very bullish in the short term, but longer term, I think it still has a lot of confusion tied to it. With that being said, traders are going to be hanging on every headline coming out of the Middle East, because that right now seems to be the story.

Overall, I am bullish on oil, and the longer this situation goes on between the Americans and the Iranians, you would think it would make sense for the market to try to start to price that back into the equation.

Ultimately, this is a chaotic and volatile market. As usual, but maybe more so now, risk management is paramount as the swings can come at any time, with special attention paid to the press releases from Iran and America.