WTI/CL Technical Analysis
The Light Sweet crude oil market is showing signs of life during the trading session here on Monday, with the $62 level above, I think, offering a significant resistance barrier. All things being equal, I think you’re looking for rallies to start fading on the first signs of exhaustion, and I do think those signs of exhaustion come pretty quickly. Ultimately, this is a market that given enough time, I think will have to make a bigger decision. But as things stand right now, I think we’ve got a situation where the overall global economy is slowing down a bit, while the supply of crude oil continues to be very strong and therefore prices will stay lower. I think that is still the dynamic we’re working with.
BRENT Technical Analysis
Brent markets continue to see the overall malaise that the other grades of crude oil see. And I also believe that the Brent market has the $65 level above offering significant resistance as it is a large, round, psychologically significant figure. A bounce into that area, I think, would be an excellent shorting opportunity at the first signs of exhaustion.
It’ll be interesting to see how this plays out, but it’s really not until we break above $66 that I start to think back to the upside. I do recognize that we are oversold. But that being said, a little bit of patience probably goes a long way in order to short crude oil when it gets a little too expensive in this environment, as the range has been so bearish looking.
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