WTI Crude Oil Technical Analysis
The light sweet crude oil market has rallied a bit in the early hours on Friday and after the non-farm payroll announcement came out. That being said, I think this is a situation where traders will continue to look for value and I think the next major barrier is going to end up being the $72.50 level. If we can break above there, then the 200 day EMA could be the next barrier as well. I do think that we are oversold, and a bit of a bounce is more likely than not, especially as we recently broke much higher from a multi-year low in the form of $67.
Brent Crude Oil Technical Analysis
Brent looks very much the same, and if we can break above the 50 day EMA, which is currently right around the $76 level, then I think we will get more momentum perhaps for a round trip all the way back to the $82 level. I also recognize that Brent will more likely than not follow Light Sweet Crude or vice versa. So therefore if I see one of them moving higher, I will follow with the other.
At this point, it’s probably worth noting that the 70 level has been a major floor in the market for a couple of years now. And I think as a result, you have to look at it as a significant deal that we did bounce from there, took off to the $82 level and then pulled back. For me, it looks like Brent is offering value. So, I’m more inclined to be a buyer than a seller.
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