WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market was slightly positive in the early hours on Wednesday, but really at this point in time, the market looks as if it is just happy to sit in the middle of a larger consolidation area. At this point, I believe that the $65 level underneath is massive support, while the $72.50 level above is significant resistance.
Keep in mind that Thursday is Thanksgiving in the United States, and that will directly affect the futures market. So, the oil market might be somewhat quiet. Nonetheless, I think we are still looking at the same situation where we are just simply bouncing around in this area down here trying to form some type of basing pattern.
Brent Crude Oil Technical Analysis
Over in the Brent market, it looks very much the same, although we are closer to the support level than we are in the WTI grade of oil, but essentially, they say the same thing. With that being the case, I think you’re looking at dips towards the $70 level as a potential buying opportunity.
But in the short-term markets only, you wouldn’t be looking to hang on to a bigger position from that level, at least not yet. The tension in the Middle East dropping a bit certainly has helped, I guess, a little bit to the downside as far as momentum is concerned. But really, I think the biggest problem right now is people are worried about demand. As long as that’s the case, we may be stuck in this range here in the Brent market.
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