WTI & Brent Crude Oil Forecasts – 200-Day EMA Holds as Middle East Rumors Swirl

Crude oil markets drop on the latest headlines. WTI Crude Oil tests critical dynamic support at its 200-day EMA near the $79.00 region. The light sweet crude oil market has found itself a bit negative during the open here on Monday as word got out that supposedly the Iranians and the Americans are closer to a deal again from the White House, which the Iranians immediately denied, and a missile went flying towards a tanker. So, I am not really sure where the faith is in any of this, but it appears that the market, at least for now, is willing to go with that narrative. The 200-day EMA is offering support. It will be interesting to see if that can hold. Ultimately, though, this is a market that will continue to move on the latest headlines, be it just randomized or things that are actually happening.

Brent Crude slips back toward its 200-day EMA near $83.66 following a pullback from $100 resistance. The Brent market is also testing the 200-day EMA sitting just below the $85 level. This market has been very noisy, and when you look at this chart, it becomes a little clearer that maybe we are just hanging out in the middle of a range. And that makes sense, because I suspect that a lot of traders really just do not know what to do with this chaos coming out of the Middle East. The Strait of Hormuz is closed; it has remained closed, and eventually that becomes a big problem. As things stand right now, people are still hoping some type of deal gets struck, but there are a lot of things that are standing in the way, not the least of which would be the egos of the leaders involved. With this being the case, it is a market that finds itself sitting right around the $85 level, an area that has been important multiple times in the past, and it does make sense with the 200-day EMA, the technical traders are watching that as well.