WTI Crude Oil Technical Analysis
The light sweet crude oil market has shown itself to be a little bit weak in the early part of the Monday session, but I think at this point in time, the $70 level is a large round, psychologically significant figure, and we are in the midst of a gap that had formed right when the war between the United States and Iran kicked off. That being said, this is a market that I think continues to see a lot of back-and-forth behavior, but if we were to break down below the $66 level, then we could go looking to the $60 level. A rally from here above the $70 level opens up the possibility of a bigger move.
Brent Oil Technical Analysis
The Brent market has been back and forth during the course of the trading session here in the early hours of Monday. It looks like the $70 level is trying to offer a support level. The $70 level is an area that attracts a lot of headlines, and I think, given enough time, that if we rally from here, we could go looking to the $77 level to get to the top of the gap that kicked off the war.
That being said, I think we’re just going to bumble around here. I think we’re trying to figure out where to go next, and I think things will be very noisy for a while. Short-term buy on the dip type of strategies are what I’m looking at here, although I can envision where oil continues to drop. I just don’t think there’s a whole lot to do here while the market tries to sort itself out.
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