Weekly WTI Crude Oil Technical Analysis
West Texas Intermediate Crude Oil first retreated during the trade week, but then reversed course and displayed renewed indications of life. At this time, the market appears to be poised for volatility and attempting to break out of the range we have been in. The 50-Week Exponential Moving Average is slightly above the $90 level; if we could break above there, it is likely that the market will rise. Keep in mind that many people continue to view the OPEC production cutbacks as a spur to go higher, but you must also be concerned about a lack of demand due to the deteriorating global economy. I believe you are more likely to observe sideways movement than anything else.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.
Weekly Brent Crude Oil Technical Analysis
Brent markets initially declined during the week, but have since shown signs of life. The market is currently hovering around the 50-Week EMA, as is the WTI grade. The $100 level is a big level of resistance, and if we could break over it, it is possible that the price might go much higher. If the price breaks above the $100 mark, the $105 level will likely be pursued. The $90 level below should provide substantial support, so a break below that might drive this market to the $85 level. As with the WTI grade, I anticipate a great deal of erratic trading, so bear this in mind and realize that we are attempting to forecast future demand.