The market for West Texas Intermediate Crude Oil will continue to use the probable global slowdown as a bit of a “heads up” as to where we are headed. The $87 level below provides some support, but with the release of the jobs report on Friday, it is expected that there will be a great deal of volatility and people will attempt to apply the concept of jobs to demand as well. If we break below the $85 level, crude oil is expected to fall to the $80 level. In either case, this market is, to say the least, exceedingly volatile.
Analysis of Brent Crude Oil Technical Data
Brent markets have also declined significantly over the past few days and are currently threatening the $92 level. If we are able to break below the $92 level, it is likely that we will reach the $90.00 level. The 200 Day Exponential Moving Average (EMA) is at the $97 level; nevertheless, we may be experiencing some short-term oversold conditions at this time.
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The Brent market will continue to be volatile, to say the least, but it appears that we still favor the downside more than anything else at this time. More often than not, rallies will provide possibilities for shorting, unless we break above the $100 barrier, which would be a significant triumph for the bulls and change a great deal.