WTI and Brent Crude Oil Technical Analysis
The light sweet crude oil market has shown itself to be bullish as Americans have attacked the Iranians again, and as a result, it looks like the market is going to continue to determine that the $70 area is an area of significant support. If you’ve been watching me, I’ve kind of been calling for this anyway. We just needed a reason to finalize that concept; maybe that’s what we just got.
I still think the 200-day EMA above is resistance, so I think we’re just in a range. I don’t necessarily anticipate this market taking off in one direction or the other, but I think you would look at a nice range-bound trading environment.
Geopolitical Shocks Challenge Key Moving Averages and Floors
Brent markets have rallied a bit as well, gapping straight to the upside, but the 200-day EMA above, I think, offers a bit of a barrier. To the downside, the $70 level is an area that I think is a floor as well. Right now, I think we’re trying to find the summer range that we typically see in this market; we just don’t know exactly where it’s going to be yet.
So, with that being the case, I watch this market for signs of exhaustion and maybe signs of peace in the Middle East to short, and then every time we get a little bit of nervous, I think you go long. Eventually, we’ll settle into a defined range; I think we’re still in the middle of trying to figure out where that is.
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