Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market has shown to be somewhat volatile, but it appears that we are prepared to attempt to predict the next major price shift, which will likely occur after the Federal Reserve has its day. Ultimately, the Federal Reserve will be hawkish, and this will have a significant impact on the direction of the oil market, as they may impede global economic growth. If this is the case, then it is likely that oil prices will fall below $80 per barrel. The $80 threshold is a large, round, psychologically significant number and an area where many people will need to take heed. Just above the $90 level, there should also be further interest.
Analysis of Brent Crude Oil Technical Data
Brent also battled a bit throughout the day, but we are essentially just grinding back and forth to determine the next step. I believe that, at least in the near future, it would be prudent to maintain a position around the $90 level. On Monday, the market created a hammer during the previous trading session; if it breaks below this level, additional selling could enter the picture.
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The 50-day exponential moving average (EMA) is getting close to crossing below the 200-day EMA, initiating the so-called “death cross” that many long-term traders view as a negative signal. Whether or whether this is significant remains to be seen, but it is something to take note of.
