WTI/CL Technical Analysis
The light sweet crude oil market has rallied a bit during the early hours here on Tuesday, as we continue to look at the 50 day EMA just above near the $64 level as a bit of a ceiling. I suspect there is a lot of order flow between there and the $65 level, keeping a bit of a lid on this market. That’s an area that previously had been massive support.
So, there should be a certain amount of market memory in that neighborhood. Short-term pullbacks, I think, continue to be buying opportunities as we see so much in the way of a buy on the dip mentality now that the United States and China are starting to make overtures towards opening up global trade.
Brent Technical Analysis
Brent markets have rallied a bit as well, and as a result, it looks like we are going to threaten the 50-day EMA eventually. We’ll just have to wait and see, but I think you’ve got a situation where we are trying to form a massive floor based on the $60 level forming a double bottom. I do think that the $70 level is your target, but the 50 day EMA may cause a little bit of a headache on the way up.
Ultimately, this is a market that is in flux, and it is trying to find its bottom. You can see on longer term charts that the $60 level of course has been crucial, just as the $70 level has been. So, it’s also possible that we just bounce between these two levels for the rest of summer. We’ll just have to wait and see. I am a buyer of dips, though.
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