WTI Crude Oil Technical Analysis
The light sweet crude oil market has rallied a bit in the early hours on Tuesday to show signs of life as it looks like we are trying to get to the 50 day EMA. More importantly, we have the $70 level above that could offer a bit of a target or possibly significant resistance, we will just have to wait and see. Nonetheless, it’s worth noting, and I have said this multiple times over the last several weeks, that we have just bounced from a major three year support level.
Because of this and the fact that typically this time of year crude oil does tend to do a little better, it makes sense that this bounce continues. If we can break above the $70 level, then I think the light sweet crude oil market goes looking to the $72 level. If we pull back, it more likely than not will end up being a buy on the dip opportunity.
Brent Crude Oil Technical Analysis
Brent markets are above the 50 day EMA, as it looks like they are ready to go screaming towards the $75.50 level. Although we are just a touch overextended, and we are approaching a little bit of a resistance area. So, a short-term pullback probably makes a certain amount of sense. And then I think we probably look at that as a potential buying opportunity here as well. I have no interest in shorting crude oil in either grade right now and I do think that we have further to go to the upside over the next several weeks.
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