WTI Crude Oil
The West Texas Intermediate Crude Oil market has gapped higher to kick off the Tuesday session, reaching towards the highs from last week but failing to break out quite yet. Nonetheless, this does suggest that there is a significant amount of buying out there, so I like the idea of buying short-term dips. I do not necessarily think that we are looking at a scenario where we are suddenly going to explode to the upside, but clearly this is a market that should continue to enjoy a bit of bullish pressure. Most of this is probably due to the following US dollar more than anything else, but I also recognize that we are looking at a scenario where it is going to be noisy, so you have to be very patient and think short-term.
Crude Oil Video 12.08.20
Brent markets rallied a bit during the trading session on Tuesday but reached towards the 200 day EMA and found some sellers in that area. Ultimately, this is a market that I think will try to break out, but we are doing more or less a “slow grind” higher. This is based upon currency devaluation and of course OPEC actually sticking to its production cuts for once. Ultimately, the market could go looking towards the $49 level which was the scene of a major breakdown and should be a target. Ultimately, I think at that point we would see a lot of selling pressure that extends between the $49 level and the $50 level. Breaking above there would be extraordinarily bullish. In the meantime, I look at pullbacks as buying opportunities all the way down to the 50 day EMA.
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This article was originally posted on FX Empire
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