Analysis of WTI Crude Oil Technicals
During Monday’s trading session, the West Texas Intermediate Crude Oil market pulled back slightly to challenge the top of a prior downtrend line. Consequently, the market began to exhibit indications of life, and it appears that we will continue to observe a great deal of erratic activity. Currently, the market is likely to view the 50-Day EMA as a potential barrier; if we were to break above that level, then the 200-Day EMA is likely to be tested. In contrast, if we were to experience a collapse below the lows of the previous several days, we would most certainly test the $80 level.
Analysis of Brent Crude Oil Technical Data
Brent markets also retreated little before exhibiting signs of life. The market is currently hovering around the 50-Day Exponential Moving Average (EMA), thus it is possible that the region will continue to exhibit signs of attraction. The 200-day exponential moving average (EMA) should continue to provide resistance at the present price of $95.38.
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If we are able to break over that level, it is likely that we will see a larger push towards the $100 mark. In contrast, if we observe a reversal below the $90 level, the market is likely to weaken significantly, possibly reaching the $85 or $82.50 levels. Taking these factors into account, I believe this situation to be extremely volatile, thus it is likely that we will need to maintain a prudent position size.