WTI Crude Oil Weekly Technical Analysis
The West Texas Intermediate Crude Oil Market initially did try to rally for the week, but we are still stuck in this pattern. Because of this, it’s difficult for longer term traders to get overly excited about the market, as we have been decidedly flat for a couple of months and really when you look at the charts from a longer term perspective, we’ve got about two and a half years of the $65 level offering significant support.
So that’s the one thing that jumps out on the chart. I suppose buyers will be looking for some type of value, but really at this point in time, what they need, not only would it be a value proposition, but some type of momentum and we just don’t have that at the moment.
Brent Crude Oil Weekly Technical Analysis
Brent looks very much the same. The $70 level has been important multiple times going back four or five years and has been support going back about two and a half. We are getting close to it, so we’ll have to see if it holds. If it does, then a bounce makes sense. That bounce is probably not going to see much in the way of momentum, at least in the short term. But if we were to break down, then you’ve got to keep an eye on the $65 level. Anything underneath there would be really ugly.
Crude, especially Brent for whatever reason, does tend to move in $10 increments. So that’s why if we bounce from 70, I’d keep an eye on 80, but I think judging from recent action, I don’t even think we have enough momentum to fulfill that typical move yet, but certainly it looks like we are approaching significant support.
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