Good morning!
This is your Monday, May 18 market update around 9:30 a.m.
A lot of people are asking the same question right now: What’s next for crude oil?
Looking at the 6-hour crude oil chart, the market continues to trade inside a very tight range. This is a continuation chart, meaning the July contract rolled in late last week as the June contract approaches expiration tomorrow.
What the chart is showing us is simple — crude oil is stuck in consolidation mode.
Right now, the market is trading like a pinball machine between major resistance and support levels:
• Resistance sits near 106 on a closing basis
• Support comes in around 95.50 on a closing basis
Until crude can break above or below those “bumper lines,” we are likely to continue seeing choppy back-and-forth trade.
A close above 106 could signal another leg higher, while a close below 95.50 may indicate a larger downside move developing.
For now, the market remains rangebound and traders continue waiting for the next major catalyst.
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