WTI/CL Technical Analysis
The light sweet crude oil market has fallen a bit during the early hours here on Tuesday, losing over one and a half percent pretty quickly. The $65 level continues to offer resistance, and it is probably worth noting that the 50-day EMA is sitting just above the $65 level as well. So, I think that all ties together quite nicely for some type of barrier.
Pulling back from here makes a lot of sense because quite frankly, there are a lot of concerns out there about supply with the Americans, OPEC, and Russia all pumping out massive quantities of oil, increasing production it’s going to keep a lid on pricing. So, it’s not a huge surprise to see that every time we get close to the $65 level, the sellers should return.
Brent Technical Analysis
Brent markets have pulled back a bit during the early hours on Tuesday as we are hanging around the 50 day EMA in this market as well. That being said, this is a market that is supported just underneath current pricing near the $67 level, so it’ll be interesting to see how that plays out. I think overall Brent probably finds itself in some type of range over the next couple of weeks, and I believe that probably shows up in the light sweet crude oil market as well.
In other words, it’s more or less a situation where we are going back and forth. We are trying to carve out the range. I don’t know if we know it quite yet, but somewhere around the $65 level here should be support. And then I think somewhere around the $69 level should be resistance.
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