WTI Crude Oil Technical Analysis
The light sweet crude oil market has drifted a little bit lower after gapping higher on Friday at the open, and it just looks like a market that continues to see a lot of downward pressure. Short-term rallies at this point in time continue to be selling opportunities at the first signs of trouble. The 50-day EMA and the downtrend line both come into the picture to offer a ceiling.
That being said, if the market were to break above $60, then the conversation starts as to whether or not it can reach $62. A gentle grind to the downside continues to be the overall attitude in this market, and there seems to be no real attempt to turn things around at the moment.
Brent Technical Analysis
Brent markets initially gapped higher as well, but then turned around to show signs of weakness. The $60 level is a large, round, psychologically significant figure and an area that has acted like a floor in the market. If the market were to break down below the $60 level, that would be a very negative turn in events in this market, and could send both grades of oil much lower.
This market is probably best played through the prism of shorting after it rallies slightly and then shows signs of hesitation. The oversupply of crude oil coming out of Russia, OPEC, and the United States continues to be a real problem for these markets, especially as demand is a little weaker with the global economy looking somewhat sluggish and lackluster when it comes to demand.
For a look at all of today’s economic events, check out our economic calendar.