Analysis of WTI Crude Oil Technicals
After initially creating a hammer pattern for the week on Monday, the West Texas Intermediate Crude Oil market has risen somewhat during Tuesday’s trading session. The $80 level has been targeted, so if we can break above it, I believe there could be a slight recovery. Crude oil prices have fluctuated based on the notion that supply is constrained, but demand is going off a cliff.
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If global economies continue to contract, it will be detrimental for oil prices. However, this does not imply that it will descend directly from here. There will be the occasional rally, which, to be honest, will likely present an excellent selling opportunity.
Analysis of Brent Crude Oil Technical Data
Brent prices rose throughout Tuesday’s trading session to demonstrate signs of life, surpassing the $85 barrier. Currently, the market is attempting to recover, and if it does, you will likely have a chance to resume shorting. At this time, the market may be rather saturated, so I would watch for symptoms of tiredness to capitalize on. However, if we were to break below the hammer from Monday’s session, this would open the door for an assault on the $80 level, and possibly a move much lower than that.
Considering the chart, the question now is whether or not we are attempting to build a double bottom, or if we will continue to decline. Demand is unquestionably a cause for concern, that much is obvious.