WTI Technical Analysis
The light sweet crude oil market has fallen early on Monday, with the markets really looking as if they are moving on the latest headlines. Donald Trump has suggested that he is still willing to talk to the Iranians. That has given a little bit of hope for crude oil, but quite frankly, it was stretched anyway. I think it is more or less just an excuse to start selling off and maybe taking some of those profits.
That being said, this is a market that still has plenty of support in multiple areas underneath, not the least of which would be the $90 level, with the 50-day EMA rapidly approaching that general vicinity as well. One would think we are just one headline away from everything blowing up yet again. This has been the pattern in this market for some time now, making things very difficult.
Brent Technical Analysis
The Brent market finds itself sitting just above the crucial $100 level as New York comes online, and quite frankly, this is an area that could be support. But even if we were to break down below there, I see several different support levels underneath, especially near the $95 level.
The turnaround and rally from here could open up the possibility of a move to $110, which is where we had seen resistance previously based on market memory theory. Ultimately, this is a market that will probably be moving on the latest headlines as well. I just do not see how that changes. So, in this environment, erratic short-term trading is probably one of the few things that you can expect.
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