WTI Crude Oil Technical Analysis
The crude oil market in early Tuesday trading has fallen and a lot of this comes down to the idea of demand falling quite drastically. You can see that the West Texas Intermediate Crude Oil Market has broken through the $71.50 level, showing signs of significant weakness. That being said, I do think that the $70 level will probably offer a bit of support, so it’ll be interesting to see how that plays out.
The market breaking down below $70 would be very negative indeed. And at that point, I think you really start to see this thing fall apart. On the other hand, if we can turn around and break back above the $72.50 level, then you have a real shot of the market taking off to the upside and going much higher, perhaps reaching the $73.50 level.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same. We are now below the $75 level, and I think you’ve got a situation that we probably at this point in time might be looking at $72.50 for some type of support. All things being equal, this is a market that I think continues to be noisy and very difficult to really jump in and try to buy after this recent fact that the market of course eventually runs into a scenario where it just gets too cheap. There is a lot of concern right now about demand and it looks like Chinese demand is slowing so that really has sent the market reeling to the downside during this session.
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