CL/WTI Technical Analysis
The light sweet crude oil market has rallied rather significantly during the session here on Monday as we have reacted to the announcement over the weekend that the United States and China have cut tariffs quite drastically, with a 90-day ceasefire as it were between the two countries in order to work out a deal.
This does bode well for the idea of global trade, which, of course, bodes well for the idea of crude oil rallying. Ultimately, as long as the market continues to see hope. I think it’s only a matter of time before we bottom here and oil really starts to take off. The $65 level though, needs to be overcome for the next leg higher. In the short term, I think pullbacks continue to offer buying opportunities, with a special focus on the $60 level.
Brent Technical Analysis
Brent markets, of course, have rallied significantly as well, with the 50-day EMA sitting right around the $67 level being a potential target. We, of course, are rallying here just as we are in the light sweet crude oil market, and therefore, I think the analysis is very similar. We’re looking for short-term pullbacks as buying opportunities in a market that quite frankly probably is in the process of forming a longer-term bottom.
The $60 level below I think is a major support level as well. So, with that being said, I like the idea of buying Brent on dips. And if we can clear the $70 level, it’s likely that Brent will take off to the upside.
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