WTI Crude Oil Technical Analysis
The crude oil market in the light sweet crude oil grade has gapped lower as it looks like traders are starting to perhaps price in the idea that the situation in the Middle East is not getting any worse.
I think that, in and of itself, probably helps, but it is also worth noting the market may have been a little overdone, a little overstretched, and it is very reasonable to expect that some people may have been looking to take some of the profit out of the market.
That being said, we have a long weekend ahead of us. As far as the possibility of the next couple of days having headlines to drive oil prices in one direction or the other, this remains a very difficult and dangerous market to trade in.
The $105 level has been a bit of a barrier in the short term. We will see if that remains resistance. Support could be found right around the 50-day EMA, which currently is all the way down at the $88.85 level.
Brent Technical Analysis
The Brent market did not gap down quite as much, but it did gap down, and it looks like it is looking at the $100 level as a bit of a floor. The $100 level, of course, is a large, round, psychologically significant figure, and it makes a certain amount of sense that traders may pay attention to it.
Overall, this is a market that remains bullish and a little bit more sensitive to things going on in the Middle East than the light sweet crude oil market, so there is a bit of a premium. Regardless, this is a market where dips, more likely than not, will continue to attract value hunters.
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