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WTI Crude Oil (US) Technical Analysis
The West Texas Intermediate Crude Oil market pulled back a bit during the trading session on Tuesday, as the market has seen a lot of volatility. However, we have seen buyers step back into the market to try to support it, so I suspect it is probably only a matter of time before we see this market turnaround and rally due to the fact that there are supply concerns, and of course there are massive geopolitical concerns going forward. Ultimately, this is a market that probably goes looking toward the $90 level, which is a large, round, psychologically significant figure, and then possibly goes looking to the $95 level.
Underneath, the 50-Day EMA should offer support, and as long as we stay above there, I think there will be plenty of buyers willing to get involved in taking advantage of “cheap oil. If we break down below there, then we have to start looking toward the 200-Day EMA underneath that would offer a significant amount of support as well.
Brent Crude Oil Technical Analysis
The Brent market has shown itself to have buyers underneath as well, offering a certain amount of support as the market has plenty of buyers underneath that are looking for value. Ultimately, the market I think is looking to the $95 level over the longer-term, but it’s going to take some time to get there more likely than not. Having said that, if we were to break down below the 50-Day EMA, then I think the 200-Day EMA also comes into the picture.
Regardless, there’s no real argument to be shorting oil at the moment, although it doesn’t necessarily mean that the market is going to shoot straight up in the air from here, therefore I think we have a lot of volatility, and this could continue to offer a lot of opportunities for short-term traders, but from the longer-term perspective, there’s only one direction you can trade this market, and that is to the upside. Pay attention to global growth because that also comes into play here as well. Geopolitical tensions in the Middle East of course also have a major influence.
For a look at all of today’s economic events, check out our economic calendar.
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