WTI Crude Oil Weekly Technical Analysis
The West Texas Intermediate Crude Oil market has plunged rather drastically during the course of the trading week, as we have finely sliced through the $70 level. We have also broken below the 200-Week EMA, which of course is a very widely followed indicator, suggesting that crude oil is about to take a huge punch in the face. At this point, any rally at this point will more likely than not continue to see a lot of selling pressure, so looking for signs of exhaustion will more likely than not end up being the best way to trade the market. In fact, at this point it’s not until we break above the $80 level that we would actually have a buy signal.
Brent Crude Oil Weekly Technical Analysis
Brent markets also fell rather hard and sliced through the psychologically important $80 level. Furthermore, it also broke down below the 200-Week EMA, so it does suggest that the market is going to continue to see quite a bit of selling pressure. Brent of course is highly sensitive to economic behavior outside of the United States, and therefore a lot of traders will be looking at Europe and Asia for directionality. It appears currently that there is still plenty of negativity out there, so ultimately this is a situation where we will continue to see more of a “fade the rally” type of attitude.
The size of the candlestick does suggest that there is more momentum out there, and I certainly would not want to trade against it. With this, I think we’ve got our answer as to where the next move is going, and it seems to be lower.
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