WTI/CL Technical Analysis
The light sweet crude oil market has rallied pretty significantly during the early hours on Monday, as we continue to see the market try to take off to the upside. We are now above the 200 day EMA and with that being the case, I think longer term traders are going to look at this as a potential buy signal. And of course, we could go all the way back to the $78 level before it’s all said and done.
Short term pullbacks, I think, are buying opportunities, with the 50 day EMA rising from the $66 level and starting to approach the price. All things being equal, this is a market that I do not have any interest in shorting and I believe that the $65 level is the floor in the light sweet crude oil market at the moment.
Brent Technical Analysis
Brent looks very much the same, except it’s actually just now testing the 200 day EMA. So maybe Brent becomes a little bit of a laggard in comparison to the other contract, but I do think that it will follow the same trajectory. I think we get a shot at going towards the $75 level, possibly the $80 level. Short-term pullbacks, I think, offer buying opportunities, with the 50-day EMA near the $68.50 level and rising. This is a market that did very much the same thing as light sweet crude did during the Israeli Iranian conflict, and now is looking to continue that grind higher now that the panic’s gone and the seasonality suggests that we should continue to rise. I’m a buyer of dips.
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