WTI Crude Oil Technical Analysis
Crude oil has been somewhat positive over the course of the trading session, with the West Texas Intermediate Crude Oil Market bouncing from the $80 level. The $80 level of course is a large round psychologically significant figure and an area that previously had caused quite a bit of resistance. In other words, we have a significant amount of market memory here.
With that being said, I think this is a situation where you are looking at a back and forth scenario until we break above the $81.75 level, which could open up a move much higher, perhaps reaching towards the $84 level. In general, this is a market that I don’t have any interest in shorting simply due to the fact that this is a time of year that crude oil demand picks up.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same, with the $85.50 level being a bit of a barrier. If we can break above there, then the market could go higher, perhaps as high as the $90 level. Short-term pullbacks at this point could be buying opportunities with the $84 level underneath the offering support.
In general, this is a market that I think is just going to be very noisy as we are trying to sort out where we are going next, but I think the cyclical and the geopolitical concerns will almost certainly have this market going higher, not lower. So I don’t really have any interest in shorting anytime soon. I remain bullish, at least for the next several months, and therefore I think this is a scenario where every time it dips, you have to think about perhaps finding a little bit of value.
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