Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market rebounded somewhat during Monday’s trading session, as prices had become slightly oversold. As expected, the $90 level is sitting just above and producing a bit of commotion. Just recently, the 200-Day EMA was crossed by the 50-Day EMA, establishing the so-called “death cross.” Ultimately, we are in a significant decline, but we needed to rebound. Whether or whether we will continue to rise is a whole separate matter, but I am looking to short this market in the range of $90-$91.
Analysis of Brent Crude Oil Technical Data
As we approach the $95 barrier, the Brent market has risen significantly during the trading session. This could cause some psychological resistance, but I believe it’s just a matter of time before the 200-Day EMA causes some psychological opposition. In addition, much of the reaction we’ve seen has been a result of Russian losses in Ukraine, but I don’t see that changing much at this time.
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Early in the day, the US dollar has been pummeled, possibly for the same reasons, which has a modest impact on this market. If we were to break below the $90 level, there is a chance that we may fall to the $85 level, which is my objective given sufficient time. Before shorting, we must see symptoms of weariness, which I anticipate we will see closer to the 200-day exponential moving average. In this market, a little bit of patience will go a long way.
