WTI/CL Technical Analysis
The light sweet crude oil market has shown itself to be rather bullish in early trading here on Tuesday, as we have shown the $62 level to be important support yet again. And it looks like the $62 level is going to offer support down to the $60 level. That is an area that I think continues to be important, this $2 support level, and as long as we can stay above $60, I think we stay in somewhat of a range.
It makes sense because we have massive amounts of crude oil being pumped out by Russia, OPEC, and the United States. But at the same time, there are questions about demand. So, I don’t know if oil can truly take off. I just think we’re in a bit of a holding pattern, with $65 being significant resistance.
Brent Technical Analysis
Brent markets are very much in the same situation, as $65 level underneath is significant support, with the $69 level being significant resistance. We are sitting just below the 50 day EMA. And again, you still have that same issue where crude oil demand may not be enough to take it out. So, we’ll just have to wait and see whether or not market participants can really get the momentum going. But I think you’ve got a scenario where, for the foreseeable future at least, we are likely to continue to see this market show itself as being very range bound. And I think that range bound attitude makes for nice opportunities for those who are patient enough to wait for price to get to one of the extremes.
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