WTI/CL Technical Analysis
The light sweet crude oil market is pretty choppy in early trading here on Thursday as markets are trying to sort out what they want to do. This is a market that when you look at it, the $65 level is clearly an area of importance. And with that being the case, you will have to look at this through the possibility of a little bit more sideways action, but I do think there is plenty of support just below.
In fact, the $65 level was an area where we had seen a lot of noise previously as resistance. So, market memory has already proven itself. And now the question is, can we build up the momentum to rally? I think we can, but I think the 200 day EMA might end up being a short-term target. I think this is a grind higher, not a big move.
Brent Technical Analysis
Brent markets look very much the same as you would expect, with the market memory, the previous support and then resistance now becoming support again, somewhere right around the $68 level. The Brent market is a little sloppier than the other contract, but it’s essentially doing the same thing. We are hanging around the 200 day EMA and if we can bounce, I think we could get as high as $71, but that’s about as far as I’m looking for this market to go at the moment.
We are in a very grinding type of market right now and oil has just been miserable for that. There has been a serious lack of momentum. So, I think we’ve got a grind higher for the rest of the summer, barring any extraneous events. But I do favor the upside. I do think that we’re well supported.
For a look at all of today’s economic events, check out our economic calendar.