The light sweet crude oil market started out the day on the back foot, but at this point in time, it continues to see buyers fighting to keep the market elevated. Are we starting to form the summer range?
Crude Oil
The light sweet crude oil market fell initially during the trading session on Monday to test the crucial 200-day EMA, but it has turned around to show signs of life again and that, of course, is a good sign because the 200-day EMA is obviously an area that traders pay close attention to, especially with the $62 level underneath it offering support for some time.
If we can rally from here, and it looks like we're going to, I anticipate that we could make a move towards the $65 level. I don't know if we are going to break out anytime soon, and with that being the case, the market is likely to see a lot of choppy sideways behavior and I think this is where we have the look of a market that is trying to determine the longer trend.
Anticipating Seasonal Trends
The longer trend at this point in time is probably going to be a little bit higher from here as we head into the summer driving season. The United States and Iran are still trying to come to some type of an agreement and fears of a US military strike I think are abating a bit, but the market just grinds sideways upwards and refuses to drop.
Therefore, I think we've got a situation and therefore I think this is a market that you probably buy dips on, selling the market when it rips. I don't think that it is going to be a huge move to the upside, but I do think shorter-term traders will probably be attracted here.