WTI/CL Technical Analysis
The light sweet crude oil market has basically been testing the top of the short-term range most of the morning. And at this point in time, we are waiting to see whether or not crude oil can break to the upside yet again. This is a market that is currently hanging around the previous resistance barrier that had been so important.
Now, after the chaos unleashed in the Middle East, we have seen the market spike extraordinarily high only to turn around and drop and test the same area. All things being equal, if we can hang out in this area and go sideways for a while, which we have so far, that’s actually a good sign because it allows the idea of the market to get used to this pricing, to be stable. I do think eventually we break to the upside, but I think it’s going to be more of a grind and not some massive shot like we had seen previously.
Brent Technical Analysis
The Brent market is now threatening the $68 level and the 50 day EMA by extension. This is a market that has been pretty noisy right along with other grades of crude oil as the Israelis and the Iranians of course had it out for 12 days. Ultimately, I do think this is a scenario where if we can break above the $69 level, that will bring enough momentum in to start sending this market higher. And that is what I expect. The question, of course, is how long will that take?
For a look at all of today’s economic events, check out our economic calendar.