WTI/CL Technical Analysis
The light sweet crude oil market has found itself a little negative in pre-market trading as the market is sitting just above the crucial 50-day EMA and of course continues to try to sort out where it wants to go for a bigger move. Ultimately, I think you’ve got a situation here where the oil markets just are in a bit of confusion and perhaps even exhaustion after the war between Iran and Israel got the market flying suddenly.
We are stuck between the 50 day EMA and the 200 day EMA indicators, which of course leads to a lot of back and forth trading as well. The $65 level underneath is a significant resistance barrier that has shown itself to have market memory and has flipped over to a support level. So, I still look at that as a potential floor in the market. To the upside, the $70 level continues to be a bit of a problem for buyers.
Brent Technical Analysis
Brent markets have gone back and forth during the trading session on Tuesday, sitting just above the 50-day EMA, with the previous resistance area offering support. Much like the other contract, we are between the 50 day EMA and the 200 day EMA and therefore you would expect a bit of choppy volatility. If we can break above the 200 day EMA, which is roughly $71.50, then it opens up the possibility of a move to the $78 level. All things equal, this is a market that I am bullish of, but I also recognize it’s going to be more of a grind to the upside than anything else.
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