• 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.
 

Barriers and Support
 

(Click on image to enlarge)

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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