WTI Crude Oil Technical Analysis
The light sweet crude oil market has fallen a bit during the trading session on Tuesday in the early hours as we continue to bounce around and look for the bottom. Right now I think it’s a bit early to start jumping in and trying to buy this market. Quite frankly, I think I would like to see some type of momentum to the upside, but it certainly looks like we are at least trying to stabilize in this overall region.
The $72.50 level above is a major barrier that we need to pay close attention to, and if we could break above that, then I think this is a market that is taking off to the upside. The 200 day EMA sits just below the $74 level, which of course is an area that I think you would be paying attention to as well. And anything above there almost certainly would send light sweet crude much higher. Underneath we have a massive amount of support and noise.
Brent Crude Oil Technical Analysis
The Brent markets look very much the same as we continue to look at the $75.50 level as basically fair value, especially now that the 50 day EMA is sitting right there. The area around the $74 level does look to be supported, but even if we break down below there, then you have to look at $72.50 as a potential support level as well.
The consolidation of course is difficult to trade through unless of course you’re a short-term range bound trader. But right now, I do think we are in the midst of trying to form some type of bottom. There are a lot of economic headwinds out there that of course have people worried. But ultimately, I think this is a scenario where traders are trying to at least stabilize things.
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