WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market has shown itself to be somewhat supported during the early hours on Tuesday as we continue to see a lot of noisy behavior. That being said, I think you’ve got a situation where we are fairly close to a major bottom from the last couple of years in the form of $65, so you have to watch that.
But I think in general, we just continue to go back and forth because, quite frankly, I don’t think anybody knows what they’re doing at this point. So, with that being the case, I think you’ve got a situation where you’re looking to buy dips for short-term trades, not necessarily anything beyond that. The market breaking below the $65 level would of course be a major turn of events, but until we break down below there, I think you have to assume that there is some floor in the WTI crude oil market right around that $65 level.
Brent Crude Oil Technical Analysis
Brent markets, of course, continue to pay close attention to the $70 level as a major support level. And I do think that continues to be one of the biggest parts on this chart that you’ll be paying attention to. If we were to break down below $70, I could change a lot of things, but right now you’ve got a situation where as long as we can stay above there, then I think you’ve got a real shot at buying short-term dips.
These short-term dips that you buy into are more likely than not going to be just short-term trades. I wouldn’t necessarily hang on to it because quite frankly, this is a situation where the market just can’t get up off the floor, but it does have a massive amount of interest in it, so nonetheless, it doesn’t look like it’s trying to break down. The 50-day EMA is sitting right around the $75 level, so that might cause a little bit of psychological resistance, but we just continue to bounce around more than anything else.
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