Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market retreated somewhat during Monday’s trading session, as we continue to wait around and see very little clarity at this time. Consider, for example, that the 200-Day Exponential Moving Average (EMA) is positioned close above the current price of oil. If we can break over that level, we’ll be able to threaten the $92.50 level and open the door to a possible move to the $100 level. Alternatively, if we do retrace, I believe the $82.50 level will provide support.
Analysis of Brent Crude Oil Technical Data
Brent initially attempted to rally during Monday’s trading session, displaying hesitancy by falling below the 200-day exponential moving average (EMA). The market has been trading within a $10 range, with the $100 level providing substantial resistance and the $90 level continuing to provide support. As we continue to observe a great deal of erratic behavior, we are attempting to determine whether or not there will be sufficient demand to drive up prices, as well as whether or not there will be sufficient supply. OPEC has previously reduced supplies by 2 million barrels per day; but, if there is no demand, this may not be as significant.
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Currently, I view this market as one in which we will just trade in a range, with clear support and resistance. I intend to take use of this on a range-bound system with reasonable transaction sizes.