WTI Crude Oil Technical Analysis
Crude oil markets have been a little bit soft in the early hours on Tuesday, but we are essentially just hanging around where we were on Monday. The question now is, can we pick up a little bit of momentum and recover? The West Texas Intermediate Crude Oil Market certainly seems to be attracted to the $80 level, so any rally at this point in time, you would have to be looking at that level. If we break down from here, somewhere near the $76 level, I think there is a significant amount of support as well, as there was a cluster there previously.
Brent Crude Oil Technical Analysis
Over in the Brent market, it’s a very similar setup, as you would expect, with $80 underneath, more likely than not offering a little bit of support, especially based on previous action. If we break to the upside and clear the $82.50 level, then the market could go looking to the $84 level. The $84 level was a serious place of breakdown in the Brent market, and therefore I would have to assume there’s a certain amount of market memory there.
Keep in mind this time of year is typically bullish for crude oil, but right now it seems like there’s a lot of fear out there to hold anything that is a risk asset for more than about 15 minutes, so keep in mind that the markets aren’t necessarily acting the way they typically would. Nonetheless, I do think that we get a bounce sooner or later, and once we do get that bounce, it should have quite a bit of momentum that traders will be looking to jump in on.
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