WTI and Brent Crude Oil
The light sweet crude oil market has been very quiet in early trading on Friday, as we continue to see the $70 level offer a bit of support. This is an area that begins a gap that was formed at the onset of the war between the United States and Iran. So, it’s not surprising that it offers a little bit of a floor. The question now is what happens next with oil?
I think the real answer is probably looked at through the prism of history. We, generally speaking, have a sideways market through the summer, and I think that’s what we’re trying to do: find where we feel comfortable for the next couple of months. I think $67 continues to be the floor. I suspect the 200-day EMA above is resistance.
Summer Doldrums Encourage Range-Bound Trading Setup
The Brent market is somewhat flat as well, and I think, all things being equal, this is a market that will continue to see the market look at the $70 level as a bit of a floor, and ultimately, I think we are trying to find a range here as well. Again, I’m looking, at least for the time being, at the 200-day EMA as a potential ceiling. We’re basically in the middle of that range, so I’m looking to buy dips; I’m not looking to hang on to an investment. I think this is a short-term trading opportunity. I would not put huge positions on and simply accept what the market is willing to give at this point.
