WTI Crude Oil
The West Texas Intermediate Crude Oil market initially tried to bounce a bit during the trading session, but it then followed the negativity that had been seen on Tuesday during Wednesday trading. We reached down to the $57.50 level, which is the middle of the overall consolidation and trading range that we have been in. Looking at the market, you can see clearly that the $65 level has been resistance while the $50 level underneath has been supported. As we are at the extreme middle, we are essentially in “fair value.” Oil inventories came out better than expected but not enough to move the needle.
Crude Oil Price Forecast Video 16.01.20
Brent markets also fell, slicing through the 200 day EMA but did start to recover after doing so. This is a market that will also continue to look towards some type of impulsivity to get moving, and as a trader your job is to simply wait to see what the market does. It is worth noticing that we had a very negative candlestick followed by several shorter candlesticks, that are also testing the 200 day EMA. At the very least this suggests that the selling pressure is abating, but if we were to recapture the 50 day EMA to the upside, that would be a very bullish sign, especially if we can break above the $65 level. Otherwise, if we continue to go lower and take out the bottom of the trading session on Wednesday, then it’s likely that the $62.50 level and then eventually the $60 level will be targeted. You are better served waiting for the market to tell you which way it wants to go before putting money to work.
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This article was originally posted on FX Empire
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