WTI and Brent Crude Oil Hold 200-Day EMA Support Amid Gulf Tensions

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially pulled back just a bit during the trading session on Thursday but then turned around to show signs of life again as we are continuing the bounce from the 200-day EMA to the bounce on Wednesday. So ultimately, we are trying to turn things around, I think, but I also recognize that we are very much range bound.

Being range-bound makes sense because traders are somewhat bullish in the sense that missiles aren’t flying, but there are still questions about where we are going in the Persian Gulf. So, I honestly think that the market is just sitting around and waiting for some type of solution or end to the tension between the United States and Iran.

Brent Crude Oil Technical Analysis

The Brent market has also bounced, this time from the $85 level, an area that is a large, round, psychologically significant figure, and an area that is backed up by the 200-day EMA. The 200-day EMA is an area and an indicator that a lot of people will look at for support. So with that being said, it makes a certain amount of sense that we find ourselves hanging out in this area and find buyers here.

To the upside, the last swing high was closer to $95. I don’t know if that’s the range, but I’ll be watching these areas for some type of read on what happens in the market. Again, unfortunately, I think this is a market that’s just stuck by the latest headlines.

And those headlines can come out at any given time, so very difficult place to live right now is the oil market. Right now, I think a lot of traders are probably just trying to figure out what to do next.

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