Analysis of WTI Crude Oil Technicals
Thursday’s trading day on the West Texas Intermediate Crude Oil market was marked by a great deal of tumultuous activity, as prices continue to hover just above the $80 threshold. Ultimately, I believe this market will have significant downward pressure in the future, thus it is difficult to get too excited. In a market that has struggled for a considerable amount of time, I view rallies as possible fading opportunities. Remember that a severe lack of demand will be one of the greatest challenges we will face as the global economy slows. I will continue to trade this market with diminishing indications of tiredness.
Analysis of Brent Crude Oil Technical Data
Brent prices have fluctuated during Thursday’s session, as we continue to observe a great deal of erratic behavior overall. Ultimately, I believe this market will continue to be dominated by noise, but I also view this scenario as a “fade the rally” opportunity. If we were to break above the 200-day exponential moving average, then I might be convinced, but at the moment it looks extremely improbable, so I am viewing this as a potential decline below the $80 level given sufficient time.
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Ultimately, worldwide demand continues to plummet, which works against the value of crude oil, as demand will inevitably continue to decline. If we breach $80 below, watch out below.