WTI/CL Technical Analysis
The crude oil market has shown itself to be somewhat bullish over the last couple of weeks in the sense that we are stabilizing. This was after a vicious sell-off previously, and I think you have to keep in mind that we will continue to see plenty of traders out there trying to determine whether or not we are just far too oversold. I do think that is the case at the moment.
And with that being the case, the $60 level in the light sweet crude oil market is an area that I’m looking at very closely. In general, I think we’ve got a scenario where traders will continue to try to find value. The question, of course, is whether or not the market will agree with that thesis. A breakdown below the $60 level could send this market much lower. On a rally, I’d be watching $65 as a potential barrier.
Brent Technical Analysis
The Brent markets have rallied during the trading session and have broken above the short term resistance. The question at this point in time is whether or not we could continue to go higher, perhaps reaching towards the $70 level. Short term pullbacks, I still think probably see a lot of support all the way down to the $60 level, but we’ll just have to wait and see how this plays out. In general, I do like the idea of finding value and aiming for $70, but I also recognize it’s a very difficult market.
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