- The light sweet crude oil market has found itself struggling on Thursday, but at this point in time, the markets look like they are trying to form a nice tradable range.
The light sweet crude oil market has found itself struggling a bit during the trading session here on Thursday as we bounce around the $60 level. The 50-day EMA sits just below, and I think ultimately offers a little bit of a short-term floor.
If you watched my analysis over the last couple of days, I have suggested that perhaps the light sweet crude oil market—and if you have seen me talk about Brent, I think is the same situation—where we are just trying to find consolidation, some type of range from which to trade, and therefore we will eventually just settle in.
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Barriers and Support
Right now, I think we're in the process of that, and it looks to me like the $62 level above is a bit of a barrier, while the 50-day EMA and the previous uptrend line both offer support. That is cumulatively right around $58.50. This is an area that has been important recently and should continue to be so.
Crude oil does like these ranges, and despite the fact that there is a serious glut of crude oil around the world, it's probably worth noting that the $55 level was in fact defended. That is a massive level going back multiple years, so it was a little too cheap.
I don't know that it's going to get wildly expensive from here unless there's some type of action in the Middle East, for example. As things stand, I think this is a sideways range-bound market. If you're a short-term trader, you have a couple of obvious areas here that you can play off of in both directions.
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