WTI and Brent Forecast: Oil Pullback Tests Bullish Support

WTI Crude Oil Technical Analysis

The light sweet crude oil market pulled back just a bit during the trading session on Friday, as the $95 level looks to be a bit of resistance. We continue to see headlines coming out of the Middle East suggesting that perhaps the Americans and the Iranians could eventually come to some type of agreement, but we’ve heard this story before.

Quite frankly, I think the 50-day EMA is something that I’ll be watching around the $89.50 level, offering a little bit of an area where I might find enough value to buy. Crude oil will just have to wait and see. Either way, it’s difficult to short this market because of the fact that any moment now we could get an announcement that sets oil on fire yet again.

So, for me, it’s a one-way trade. It’s just a matter of whether or not I can find some support.

Brent Technical Analysis

The Brent market has pulled back as well, showing signs of hesitation near the $108 level. Now, it looks like we are watching this market, trying to find out whether or not it is still in a range. We could also make an argument that it looks like it’s in a bullish flag.

The $100 level underneath is a large, round, psychologically significant figure and an area that has been worth watching, as it was a barrier in both directions, not only the high or the low. The 50-day EMA is all the way down at $95.53, but it is rising. Therefore, it is a market that I think will continue to find buyers either way.

Again, I don’t want to short this market anytime soon. There are simply far too many risks in the Middle East going forward. All things being equal, this is a market that I think is simply grinding away and trying to figure out what to do next.

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