WTI/CL Technical Analysis
The light sweet crude oil market is threatening the $70 level, an area that of course is a large, round, psychologically significant figure and an area that we’ve already seen action at previously. We are above the 200 day EMA and that of course will attract a certain amount of attention in and of itself. So, if we do continue to see upward momentum, I anticipate that you’ve got a situation where traders are more willing than not to get involved and start buying on the break to the upside.
If we pull back, then I think you’ve got a situation where traders are going to look at this through the prism of pulling back to the 200-day EMA and then the 50-day EMA. With the FOMC during the session, it could very well throw a lot of volatility in this market.
Brent Technical Analysis
The Brent market also looks as if it is trying to do everything it can to break to the upside, especially with President Trump in America talking about sanctioning Russia, which of course has people somewhat concerned about the supply of oil. It’s probably a short-term catalyst, but quite frankly, it wouldn’t surprise me at all to see more of the same volatility that we had seen recently. I still think that the bottom of the range that we had been in previously holds as support. In the short term, I do think this remains a very positive market. He says he’s not worried about the market, so the president may very well continue to pressure Russia.
For a look at all of today’s economic events, check out our economic calendar.