WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market rallied again in holiday trading on Monday as we saw further buying. That being said, liquidity was very thin as the Americans were away for Memorial Day. We are currently at the top of the global channel, so we can expect a slight pullback, but we are nonetheless very optimistic, to say the least.
One of the biggest drivers for oil right now will be China coming back online, having locked down some of the biggest cities. If so, the world’s largest consumer will look to buy more oil. Ultimately, this is a “buy on dips” type of market.
Crude Oil Price Forecast Video 31.05.22
Brent Crude Oil Technical Analysis
Brent markets were also positive on the day, breaking above the $116 level. Doing so opens up the possibility of a move to the $120 level. After that, we might hit the $129 level. Ultimately, this is a market that I expect will have plenty of buyers ready to take advantage of the first sign of value. I have no interest in shorting this market and I think we are heading back towards the highs as nothing seems to be against it. Below, the 50-day EMA is massive momentum support that extends to a trendline. For this reason, we are at least $13 away from a potential shorting opportunity. In other words, this is a market that has yet to go higher.
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