WTI Crude Oil Forecast: Prices Slide as Fear Premium Fades

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen pretty significantly during early trading on Tuesday to break down below the 50-day EMA, showing signs of hesitation again. Ultimately, this is a market that has seen a lot of resistance near the $85 level recently, but I think more importantly, what we’re doing is just trading off the latest headlines, and the latest headlines haven’t involved missiles, so that in and of itself is going to drive down some of the fear premium.

That being said, there’s not much in the way of progress, it seems, in the talks between the Americans and the Iranians, so range-bound could be one way that traders start to look at this market. Either way, it is a pretty negative-looking candle. The 200-day EMA is at $79.48. That could be an area that traders pay attention to for potential support.

Brent Crude Oil Technical Analysis

The Brent market has also fallen pretty significantly to break below the $90 level and now looks as if it is going to test the $85 level, right where the 200-day EMA sits. Underneath there, the next major support area that I see is closer to the $78 level.

Again, I think at this point we’re just trading the latest headline, or the lack of headlines; that could be a driver as well. Ultimately, this is a market that I think is trying to find its range at the moment as we are going back and forth, and I think a lot of traders just simply don’t want to be out there risking a bunch of money in something that is so erratic at the moment.

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