Analysis of WTI Crude Oil Technicals
Wednesday’s trade on the West Texas Intermediate Crude Oil market resulted in an immediate loss of approximately 3%. It appears that the globe still anticipates a significant slowdown in economic activity, which has a significant impact on crude oil prices. As we have reversed so dramatically from the 50-Day EMA, it appears that it will continue to provide some resistance. Keep in mind that we are positioned between two major holidays, which has a significant impact on liquidity.
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In light of this, I would not be surprised if WTI dropped to $75 a barrel within the next few days. We are unquestionably in a massive decline, and that has not changed despite the recent upswing.
Analysis of Brent Crude Oil Technical Data
Brent markets also declined throughout the day, reaching $82.80. This is a region that has acted as both support and resistance in the past, so if we break below this level, we might decline substantially. At that point, I predict that we will most likely swiftly attack the $80 level, where I anticipate stronger psychological support.
Keep in mind that the markets are quite thin at the moment, so you should be wary about investing too much money in the market, as only short-term, tiny holdings are likely to be possible. You should also keep in mind that the January jobs report will likely have a disproportionate effect on energy markets because, simply, everyone is seeking some form of optimism.
