Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market fluctuated somewhat during Monday’s trading session, and the preceding downtrend line will continue to generate noise. Now that we are above it, “market memory” could play a role in pushing the market higher. In addition, the 50-day exponential moving average is positioned near $88.50, which could be the short-term objective. Next, we have the 200-Day Exponential Moving Average, which rests around the $92 mark.
Alternatively, if the price falls below the $85 level, further selling might push the market down to the $82.50 level or even the $80 level.
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Analysis of Brent Crude Oil Technical Data
Brent also rose slightly during Monday’s session, as the previous downtrend line is currently being tested. Around this time, it is more likely than not that the market will focus on the 50-day EMA, or even even the 200-day EMA at $95.55 level. If we are able to surpass this region, it is likely that we will target the $100 level. Ultimately, I believe that this market has been somewhat boisterous, and I anticipate that this will continue.
Both grades of oil that I track appear to be attempting to create a pennant or bullish flag. Nothing has yet proven one way or the other, but it is surely something to keep an eye on. At this time, great attention should be paid to the moving averages just above, since if they are broken, it is likely that oil will continue to rise.
