WTI Crude Oil
The West Texas Intermediate Crude Oil market initially tried to rally during the trading session on Monday, but then gave back quite a bit of the gains in order to do almost nothing by the time the day is done. Ultimately, this is a market that simply dancing around the $40 level, which of course is a large, round, psychologically significant figure. The 50 day EMA sits here as well, so it is really difficult to imagine what to do next other than to scalp in short-term back-and-forth momentum moves. However, if we can get another impulsive candlestick, that may give us a bit of a “heads up” as to which direction to trade for a bigger move. Right now, we are still waiting for it.
Crude Oil Video 29.09.20
Brent markets also try to rally during the trading session but gave back the gains closer to the 50 day EMA to essentially be unchanged yet again. Trading oil recently has been a lot like watching paint dry, so it is difficult to get overly excited about anything. If you are a short-term trader though, Brent also has been moving very much the same way the WTI market has, so you find the same set up here. If we break down from here, we probably go looking towards the $40 level, just as a break to the upside opens up the possibility of a move towards the 200 day EMA. In the meantime, we are simply going back and forth on short-term charts such as the five or 10 minute charts, taken advantage of micro movements.
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This article was originally posted on FX Empire