Crude Oil Price Forecast – Oil Hovers Near Major Moving Averages

WTI Crude Oil Technical Analysis

The light sweet crude oil market has done very little in early trading here on Thursday, as the market is currently stuck between the 200-day EMA on the bottom and the 50-day EMA on the top.

The market has recently broken above a little bit of a consolidation area based on the idea that the Americans and the Iranians are firing missiles at each other again. And as long as that ends up being the case, it’s likely that we continue to see a little bit of interest in this market. That being said, as long as we don’t escalate too much, there’s the possibility that we settle into a range, and a range is exactly what you expect this time of year.

I think we are still trying to find that, personally, with the area right around $70 or so offering support, at least from what we’ve seen so far. Right now, it looks like a wait-and-see type of moment.

Brent Technical Analysis

Brent markets find themselves hanging around the $85 level. The $85 level, of course, is a large, round, psychologically significant figure, but we are also between the 200-day EMA and the 50-day EMA indicators.

That suggests that perhaps there could be a bit of a squeeze. It doesn’t have to happen, but it’s something that I pay attention to. And the next impulsive candlestick could tell us which direction we really want to go. This will almost certainly be driven by headlines coming out of the Middle East, and of course, the overall drama between the Iranians and the Americans in what seems to be a situation where everybody’s stuck.

The market had bounced from the crucial $70 level. $85 is starting off for a little bit of resistance, but again, we’re just waiting on the next headline, and that’s part of what we’ve seen over the last couple of days. A market that just doesn’t know what to do.

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