Crude Oil Technical Analysis
The light-sweet crude oil market has rallied a bit during the early hours here on Friday, but really, at this point in time, we are looking at a scenario where we are trying to find some type of bottom to bounce from. That makes a certain amount of sense, considering we have been grinding lower for quite some time. And of course, oil is the lifeblood of the global economy. So, it is a look at the global economy, and it gives you an idea as to where things may go.
At this point in time, I think the light sweet crude oil market has a major barrier in the form of a downtrend line and the 50-day EMA near the $60 level. Signs of exhaustion will be selling opportunities as far as I can see, and I will treat them as such. I don’t have any interest in buying light sweet crude until we get above the $62 level. Underneath, we have a hard floor in the form of $55, which I do not think it’s broken anytime soon.
Brent Technical Analysis
The Brent market also looks very bullish in short-term trading, but once we get towards the 50-day EMA, just above the $64 level, we’ll run into the same type of resistance we have in the other form of crude. And therefore, I think I’m looking for some type of exhaustion in that area to start fading, also. In this market, you have a floor in the form of $60, which will be difficult to break. Keep in mind that there’s plenty of oil out there, and global growth is still a question. So, I think you have to look at this through the prism of a market that maybe remains fade the rally at least for the foreseeable future.
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