WTI Crude Oil
The WTI Crude Oil market has broken down significantly during the trading session on Friday, to fill a gap that had been left there at the $55 level over the last several days. That being the case, it’s very likely that the market will struggle at this area, and perhaps not even be able to recover from this. The 50 day EMA is above, and there is a significant downtrend line that continues to work against the uptrend anyway. With that being the case in a global slowdown, it makes sense that we continue to fail.
Crude Oil Inventories Video 02.09.19
Brent markets obviously follow the same chain of command, as they felt towards the $59 level. The 50 day EMA is just above and the $60 level is more than likely going to continue to offer significant resistance. With that being the case I think it’s only a matter time before we reach down to the $56 level, an area that has been massive support recently. With that being said I think that fading the rallies continues to work and until demand picks up globally it’s almost impossible to imagine a scenario where we can pick up any serious amount of momentum to the upside. Rallies at this point are to be faded and I think that the $60 level is going to be the short-term ceiling going forward. If we break down below the $55 level, look out below it would be a massive problem for the crude oil markets.
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This article was originally posted on FX Empire
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