WTI/CL Technical Analysis
The light sweet crude oil market has shown itself to be somewhat positive, and this, of course, is a good sign, especially after forming two hammers in a row on the daily chart. That being said, this is still a very negative market, and I think you need to look at it through the prism of the $55 level underneath being a massive floor. If we rally from here, it wouldn’t surprise me at all to go look into the $59 level. The $60 level above that area is going to be a significant barrier for me. All things being equal, this is a market that I think will be heavily influenced by the potential for a global economic slowdown.
Brent Technical Analysis
The Brent market, of course, looks as if it is trying to rally from the $60 level. And I think you perhaps could see a bounce towards the 63.50 level. But again, I think this is more or less a fade the rally type of scenario. If we break down below $60, then we could go looking to the $58 level, but all things being equal, I think the overproduction from Russia, OPEC, and the United States, as well as a potential slowdown, has people freaked out. And therefore, I think you’ve got a situation where oil is going to struggle, but it is oversold. So, a little bit of a relief rally would make a certain amount of sense at this point in time. That’s pretty much all I’m calling for.
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