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WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market fell rather significantly during the trading session on Tuesday, as the market looks as if it is heading toward the $80 level. However, there are plenty of areas all over the place that could jump in and offer plenty of support. After all, the OPEC production cuts have been extraordinarily bullish, as Saudi Arabia by itself has taken 1 million barrels per day off the market.
The US dollar strengthening has been one of the culprits as well, but regardless, it looks as if the market is finally taking a bit of a breather. With this, the market will continue to find plenty of buyers underneath to pick up value in what has been a very strong move over the last couple of months. That being said, you should also keep in mind that we are in the midst of the summer vacation season, so it’s likely that a lack of volume probably continues to cause issues in this market as well.
Brent Crude Oil Technical Analysis
Brent has fallen significantly during the trading session as well but it looks as if it is going to pay close attention to the $85 level underneath, which of course has a certain amount of psychology attached to it, and underneath there then we have the 200-Day EMA which is closer to the $82.50 level. All things being equal, I do think that there are buyers underneath, and therefore I’m looking for some type of bounce to get involved again. To the upside, the $90 level could be a target that traders eventually try to look toward, but we have gotten a bit overdone in the short term, so this pullback I think allows people to pick up value and continue to ride the markets of the outside.
Breaking down below the 200-Day EMA then opens up the possibility of a very deep correction, but right now we are not near that at the moment, so with this, I feel that this market is probably just working off some of the froth, and that will eventually turn around and show signs of life again.
For a look at all of today’s economic events, check out our economic calendar.
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