WTI Technical Analysis
The WTI crude oil market has bounced a bit in early trading on Wednesday, as we are bouncing off the 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of traders are watching, and with the Iranian president giving a speech at the UN, this could be a catalyst for higher rates of inflation via energy, showing itself in both the bond market and the WTI crude oil market, as well as Brent.
The idea that the war in Iran is going to end anytime soon makes no sense, and it is becoming clear that is not in the cards. So, with that being the case, one would think that this recent sell-off probably gets picked up as value. I like this area so far.
Brent Technical Analysis
The Brent market looks like it is trying to hang on to the $100 level. Turning things around and rallying toward the $110 level could be the next move if the buyers really jump on the case here. This pullback, more likely than not, looks as if it is going to be an opportunity to get long again in a market that has been so bullish for so many months.
Quite frankly, all of the pieces that caused these problems are still there. Nothing has changed, and it makes perfect sense that value hunters are stepping in, trying to take advantage of how oil moves. This is a market that remains essentially held hostage to the latest headlines and the whims of a few politicians in DC and Tehran.
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