WTI Crude Oil
The West Texas Intermediate Crude Oil market initially rally during the trading session on Monday but gave back gains in order to show signs of exhaustion. What is interesting is that volume continues to drift a bit lower, so I think at this point in time we are getting very close to a pullback. I would anticipate the $80 level offering support, and most certainly the $75 level would, assuming that we could even get down to that area. I like buying the dips, but I do recognize that if we were to break above the $85 level, it would show a new push to the upside that would have to be paid close attention to.
Crude Oil Video 19.10.21
Brent markets also have rallied only to give up the gains. At this point, $85 looks to be a little bit of a barrier but just as I see in the WTI market, I think there are plenty of buyers out there willing to get involved and take advantage of any type of weakness. I think $80 is your floor the market at the moment, so breaking down below there would be a bit of a surprise. For what it is worth, the 50 day EMA looks to be reaching towards that area as well, so it is probably only a matter of time before we should even be higher to take advantage of “cheap oil.” I believe that oil still has quite a way to go going forward, so at this point in time it is likely that the markets are ready to look at any pullback as value.
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This article was originally posted on FX Empire