Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market has dropped during Wednesday’s trading session, as a lack of demand continues to weigh heavily on the crude oil market. A couple of days ago, it was reported that OPEC was going to increase output by 500,000 barrels, but Saudi Arabia promptly refuted this claim. This prompted crude oil to rise above $80 once again, causing a slight increase. However, traders have begun to focus on the lack of demand once more, and if we break below the bottom of Monday’s candle, this market might decline significantly.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.
Remember that Thursday is Thanksgiving in the United States, thus electronic trading will be light and hours may be negatively impacted.
Analysis of Brent Crude Oil Technical Data
The Brent market has also declined, in parallel with the WTI market. Ultimately, this market appears to be attempting to test the hammer from a few days ago, and if it falls below that level, Brent will collapse alongside WTI. On the upside, if we can break above the highs of the last several days, this market may target $90, or maybe the 50-day exponential moving average (EMA).
However, a lack of demand appears to be a huge issue for traders around the world, since we appear to be entering a worldwide recession, which is toxic for oil prices. If the U.S. dollar continues to appreciate, the cycle of suffering will only intensify.