Analysis of WTI Crude Oil Technicals
As traders returned to work on Tuesday, the West Texas Intermediate Crude Oil market saw minimal movement during the session. In all honesty, this is the time of year when nobody conducts anything scientific, so you probably won’t observe any movement. However, if there is a significant news announcement or black swan event, the markets will go crazy. If you opt to short the market, which has been the appropriate strategy for the most of the year, you must be extremely cautious about the size of your position, as an attack or unexpected declaration by OPEC might drive the markets far higher than usual.
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I cannot logically or statistically explain this, but in my experience, if you have a large position during the holidays, the announcement always finds a way to go against you.
Analysis of Brent Crude Oil Technical Data
The fact that Brent prices are hovering just below the 50-Day Exponential Moving Average (EMA) indicates that they don’t really want to move. I believe that sellers will enter the market sooner rather than later, but I also know that the market will likely float aimlessly over the next few days. In other words, if I had to execute a trade, it would be to fade this short-term rise, but I’m not sure if I have to, and I certainly don’t want to invest a large amount of money on any trade right now, let alone the volatile oil market.