WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market has fallen a bit during the early hours on Friday as we continue to see a lot of noisy behavior. That being said, this is a market that will almost certainly stay range bound, so don’t expect to see it fall apart. So, because of this, I think you’ve got a situation where traders will be looking for some type of bounce that they can start buying, at least for the short term. The $65 level underneath is a major support level, while the $72.50 level above is a major resistance barrier.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same, as we are stuck in a range bound market yet again. So with the situation being as it is, I’m paying close attention to the $70 level underneath, as it should offer a bit of a floor. If we rally from here, it’s worth noting that each successive high has gotten a little bit lower. So that’s the one red flag that I see on the charts, but it wouldn’t surprise me to try to make a bounce towards a 50 day EMA or possibly even the $76 level.
Both grades of oil are waiting to see what the demand is going to be, because quite frankly, demand is not as high as it once was. Furthermore, with a Trump administration coming into the United States, one would have to assume that more drilling is about to happen in the USA.
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