WTI Crude Oil Technical Analysis

The crude oil market has bounced in the West Texas Intermediate grade from the crucial $69 level in the early hours on Friday, but all things being equal, this is a market that I think continues to see a lot of volatility, but if we rally from here, it’s likely that we could go looking to the $71.50 level. The $71.50 level is an area that previously had been a significant support level, and it now should have a certain amount of resistance above.

If we can clear that area, then obviously that would be very bullish. But I think in the short term, it’s likely that we will see more of a fade, the rally type of situation. If we were to break down below the $68.50 level, that’s a major support level on longer term charts. And that could lead to something rather ugly.

Brent Crude Oil Technical Analysis

The Brent market has bounced a bit from the $72.50 level, and I think much like the West Texas Intermediate crude oil market, the Brent market is likely to continue to see a lot of negativity. A short-term rally at this point in time that runs into exhaustion is probably a selling opportunity. And keep in mind that both grades of crude oil right now seem to be pricing in an economic collapse of sorts. Maybe not a full collapse, but clearly a collapse in demand. And if that’s going to be the case, we have a lot of rocky times ahead of us. Oil could be like a canary in the coal mine.

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