Analysis of WTI Crude Oil Technicals
During Thursday’s trading session, the price of West Texas Intermediate Crude Oil rose once more, and it now appears that the price will approach the 50-day exponential moving average. Ultimately, this market must decide if recent production cuts are sufficient to stimulate growth, or whether we will continue to focus on a lack of demand caused by a slowing economy. Keep this in mind and proceed with caution when sizing your positions, as it appears that this fluctuates on a daily basis. Either way, we can bring prices above the 50-day exponential moving average, and then we will most likely target the 200-day EMA.
Analysis of Brent Crude Oil Technical Data
Brent markets have surpassed the 50-day exponential moving average, signaling a return to life. Currently, it appears as though we are going to threaten the 200-Day EMA, and if we do break above it, it will more than likely allow for a much larger move. Having said that, recent conditions have been so turbulent that I believe it is more likely than not that we will have much more turbulence.
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People are focused on the fact that OPEC reduced production by 2 million barrels per day, but Americans are releasing large quantities of oil from the Strategic Petroleum Reserve. Whether or not there will be a major global downturn, which is plainly bearish for oil, will also be a consideration. In other words, we are in the ideal environment for a great deal of volatility, so I expect more back-and-forth than anything else.
