Crude Oil Prices Hold Key Support as WTI, Brent Await Catalyst

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped lower to kick off the trading session here on Wednesday, testing the 200-day EMA, but it has since bounced. So it, despite being negative, looks very range-bound still. Ultimately, this is a market that I think is just on the sidelines waiting to see what the next major headlines are going to be coming out of Washington or Tehran. And therefore, I think we’re trying to find some type of range.

The 200-day EMA, of course, is an indicator that a lot of people will pay close attention to, so that in and of itself could be part of why we have bounced.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, using the $85 level and the 200-day EMA both for support as we gapped lower and then bounced again. We’re sitting right here, right around the 50-day EMA.

And this is a market that will continue to see a lot of choppiness if there’s still a lot of indecision. And right now, it looks very much like a market that is full of indecision. After all, it isn’t so much about supply and demand, although in a sense it is, it’s about the latest headlines. And those are hard to gauge when we’ve got 2 people using the media to trade barbs with each other. And meanwhile, the supply of oil is dwindling. That is also counterbalanced by the fact that recently we’ve seen crude oil flow through the Strait of Hormuz over the last couple of days through the dark of night.

So we’ll have to wait and see. There are questions about whether or not the Iranians have control of the Strait anymore. But as things stand right now, I think the market is just in a form of stasis trying to figure out where to go next.

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