Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market had originally declined during Wednesday’s trading session, before falling further. However, we have recently begun to exhibit signs of life, suggesting that we will likely continue to observe choppy market behavior. By bouncing as we have throughout the day, we may see a small amount of follow-through. This market might perhaps return to the $80 level, and possibly even surpass that to the 50-day exponential moving average. In any case, I would search for symptoms of fatigue that I could exploit.
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Alternately, if we reverse direction and break below the bottom of Wednesday’s candlestick, it is possible that we will drop to the $72.50 level, and potentially even the $70 level.
Analysis of Brent Crude Oil Technical Data
During Wednesday’s trading session, Brent markets first declined, but then reversed course to create a “hammer.” If we are able to reclaim the $80 level, I believe we will experience a modest recovery that may gain speed. Since the demand outlook for crude oil is still dismal, I’ll be watching for symptoms of weariness that I may short. However, we may have gotten a little ahead of ourselves on the downside. Due to this, a relief rally makes some sense, but I have no interest in purchasing crude oil, at least until the global outlook for economic development improves.
