The crude oil markets initially pulled back just a bit during the trading session on Monday, but then turned around to continue its grind higher.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has initially pulled back just a bit during the trading session on Monday to test the 50-Day EMA. By doing so, the market is likely to continue to see quite a bit of choppiness, but we could go looking to the top of the overall consolidation area in larger back-and-forth trading. 

I think at this point we need to keep an eye on whether or not there is going to be a significant amount of demand, but we also have to pay attention to the US dollar. You should also keep in mind that the 200-Day EMA sits just below the $85 level and is racing toward the bottom of the area that I have marked on the chart.

Brent Crude Oil Technical Analysis

Brent has also pulled back just a bit during the trading session on Monday, reaching towards a 50-Day EMA as well. The $85 level sits right there around that indicator, and of course we have the 200-Day EMA near the $90 level. With that being said, the market is likely to continue seeing quite a bit of volatility, so you should be cautious with your position size. I think we stay in the range, because we are still trying to figure out what’s going on with the global economy.

The big push for higher crude oil pricing will more likely than not be a factor of the Chinese economy reopening, but the question at this point is whether or not the global economy can keep up? Right now, there are a lot of questions out there, so I think range bound trading makes quite a bit of sense.

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