Brent Crude Oil Technical Analysis

Brent continues to hang around the 200-day EMA as well, and if it can recapture the $84.50 level, then I think it’s likely that we will break towards the 50-day EMA. In general, I think this is a market that will be very difficult, but I also recognize that we are in an area where you would expect to see a lot of support. Because of this, I suppose it is probably thought of as a value proposition because quite frankly if we can’t pick it up soon, now that we are in the midst of driving season, that could be a bad sign.

Furthermore, you also have to keep in mind that it’s only going to take the wrong headline coming out of the Middle East to send this market straight back up into the stratosphere. So, with that, I think this is just noise, nonsense, et cetera. So, whether or not we can recapture that previous support level is what I would be watching in both grades of crude oil.

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