WTI Crude Oil Technical Analysis
The light sweet crude oil market has gone back and forth during the early hours on Monday, as we are just hanging around the $60 level. The $60 level is a large, round, psychologically significant figure and an area that a lot of people will be paying attention to because it extends all the way to $62 for resistance. This zone, roughly $2 tall, has been important multiple times in the past, but there are a lot of concerns when it comes to whether or not there is going to be demand. The 50-day EMA could offer resistance in this resistance zone, and rallies likely open up the possibility of shorting. I do not want to buy this market, at least not yet.
Brent Technical Analysis
Brent markets have gapped lower only to turn around and rally in early Monday trading. The $65 level opens up the possibility of a significant resistance barrier, having been tested a couple of times recently. The 50-day EMA is also right there. Ultimately, a lot of traders will come into this market looking to sell it at the first signs of exhaustion. At this point, I do not want to buy Brent either, and it is not that the Brent market is going to collapse; it is simply that the upward momentum does not appear strong enough to carry it forward. If we fall from here, somewhere around the $62.50 level, giving way to selling pressure could really open up the trap door back down to $60.
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