WTI/CL Technical Analysis
The light sweet crude oil market has found itself to be rather bullish after initially gapping lower during trading on Monday. We continue to see the $65 level offer a major resistance barrier that a lot of people are going to be watching, especially as it was such a massive resistance barrier previously, and you could, with a little bit of artistic license, suggest that it was also a neckline from an inverted head and shoulders.
The 200 day EMA sits near the $68.50 level. And if we can break above there, then oil is likely to go much higher. I do think that this is a grind though. I don’t think we’re going to see some massive shot higher unless of course something happens in the Middle East, but as things stand right now, I prefer to look at this as a market that is entering a positive seasonality.
Brent Technical Analysis
The Brent market looks very much the same, with $67 being support. And now I think we’re going to see if we can break above 69 cleanly because if we can break above $69, that opens up a move to $70 and then eventually $71.50, where the 200 day EMA currently sits.
I have no interest in shorting Brent markets, nor do I have any interest in shorting any of the oil grades. Quite frankly, this time of year typically has high demand and we are starting to see signs that perhaps there is not a recession in the United States, and that will help a lot. With that being said, I’m bullish, just not reckless. I think this is going to be more of a grind higher.
For a look at all of today’s economic events, check out our economic calendar.