WTI Crude Oil Technical Analysis
The light sweet crude oil market has been back and forth in early Tuesday trading as we continue to hang around above the $60 level. The $60 level, of course, is a psychologically important figure that a lot of people would be paying attention to, and therefore, I think you have to look at it through the prism of a market that is at least trying to hang on to this range.
I do see a lot of resistance above, though, and therefore, it wouldn’t surprise me at all if we end up carving out yet another range. If we can take out the $65 level to the upside, then that would obviously be very bullish, perhaps opening a move to the 50-day EMA. If we break down below the lows of the Monday candlestick, that could open up a move down to $55.
Brent Crude Oil Technical Analysis
Brent markets, of course, are very back and forth in a tight range, just like the light sweet crude oil market is. And now it looks like we are trying to bounce a bit, but I would point out that there is a massive amount of overhang in this market. I look at $70 as the ceiling at the moment. So if we do rally, you might want to be somewhat quick to take profit. As things stand right now, this potential tariff war and the fact that OPEC is adding 400,000 barrels of supply to the market from current levels will continue to put downward pressure on crude.
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