WTI & Brent Crude Oil Forecasts – 200-Day EMA Holds as Middle East Rumors Swirl

WTI Crude Oil Technical Analysis

The light sweet crude oil market has found itself a bit negative during the open here on Monday as word got out that supposedly the Iranians and the Americans are closer to a deal again from the White House, which the Iranians immediately denied, and a missile went flying towards a tanker. So, I am not really sure where the faith is in any of this, but it appears that the market, at least for now, is willing to go with that narrative. The 200-day EMA is offering support. It will be interesting to see if that can hold. Ultimately, though, this is a market that will continue to move on the latest headlines, be it just randomized or things that are actually happening.

Brent Technical Analysis

The Brent market is also testing the 200-day EMA sitting just below the $85 level. This market has been very noisy, and when you look at this chart, it becomes a little clearer that maybe we are just hanging out in the middle of a range. And that makes sense, because I suspect that a lot of traders really just do not know what to do with this chaos coming out of the Middle East. The Strait of Hormuz is closed; it has remained closed, and eventually that becomes a big problem.

As things stand right now, people are still hoping some type of deal gets struck, but there are a lot of things that are standing in the way, not the least of which would be the egos of the leaders involved. With this being the case, it is a market that finds itself sitting right around the $85 level, an area that has been important multiple times in the past, and it does make sense with the 200-day EMA, the technical traders are watching that as well.

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