WTI/CL Technical Analysis
The light sweet crude oil market has gone back and forth during the early hours on Tuesday, as we are hanging around the crucial 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people pay close attention to as market participants use it to gauge the overall trend. If we can break above there, then we will challenge the $64 level, followed by the $65 level. $65, being broken above, opens up the possibility of a much bigger move.
We recently did form a bit of a double bottom near the $55 level, and I think that’s your floor in the market, but $60 underneath current levels will also be important, so pay close attention to it. With that being said, I think we probably spend more time chopping around sideways than anything else until we get a catalyst for gold to truly take off.
Brent Technical Analysis
The Brent market has also been somewhat noisy and choppy, but in general, I think this is a scenario where traders are just looking to find stability first before really trying to throw a lot of money into the market. I think we are in a range between $60 and $68. And with that being the case, if we can break above $68, the 200 day EMA then gets targeted. Pullbacks at this point in time, I think still continue to be buying opportunities, with a lot of questions asked in this general vicinity as to whether or not we can maintain the base and then perhaps start a new uptrend. Ultimately, I think we’re fairly neutral.
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