Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market gapped downward to begin Wednesday’s trading session, but then reversed course and tested the $90 level. Since then, the markets have declined as traders focus on the lack of demand in the marketplace. Whether or not they are focusing on the lack of supply is a separate topic, but at this time it appears that the global slowdown is what people are paying the most attention to.
The 200-Day Exponential Moving Average (EMA) stands above the beginning price and has provided considerable resistance, so this could be a target for our rebound. Keep in mind that we are also positioned at the top of a downtrend channel, which should theoretically provide some “market memory.”
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Analysis of Brent Crude Oil Technical Data
Brent markets have retreated during the session to test the top of the previous downtrending channel, therefore it is probable that there is some buying pressure in this region. We are attempting to exit that channel early in the day, so we will have to observe how this situation develops. In any case, we should observe a great deal of disruptive behavior, and the fact that OPEC+ has reduced production by 2 million barrels cannot be disregarded. On the other side, people are also concerned about demand, so we must take that in mind as well. A decline below $90 may cause the entire market to collapse, although this is quite improbable at this time.