WTI Crude Oil Technical Analysis
The light sweet crude oil market has rallied slightly in the early hours on Thursday. But quite frankly, I think we’ve got a situation here where traders are trying to sort out whether or not we have found the bottom or if we need to go lower. After all, the area that we are trading in has been support for basically three years, but at the same time, traders are concerned about recession headwinds.
With that being said, I think you continue to see a lot of volatility in this market and it’s really not until we break above the $68.50 level when we get all clear to perhaps try a longer term buy and hold type of scenario. In general, I think you have to look at this on a 15 minute chart and just simply go back and forth between the mentioned $68.50 level and the $65 level below.
Brent Crude Oil Technical Analysis
Brent looks very much the same during the trading session on Thursday as we rallied a bit only to turn around and show signs of hesitation. The $70 level is essentially fair value in the consolidation area that extends all the way up to the $72 level. Again, though, I think you’ve just got a lot of sideways action just waiting to happen. I don’t really think you’ve got a situation where you can get too big in any position. That being said, if we could break above the top of the Tuesday candlestick, which is just above the $72 level, then you could see a move to much higher levels with the 50-day EMA being the first target.
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