WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied a bit during the course of the trading session on Monday as traders come back to work, but we need to pay close attention to the fact that the 200 day EMA sits just above, and we seem to be struggling with the idea of $69 anyway. The market is sitting on top of a major uptrend line, so the fact that it has held does give us a little bit of confidence, but we still have a lot of work to do in order to start getting bullish again. I think we have several days’ worth of sideways action before we get some type of impulsive candlestick that we can follow.
Crude Oil Video 07.12.21
Brent markets have also rallied to test the 200 day EMA but have seen quite a bit of resistance just above that will continue to be a bit of an issue. All things being equal, the $75 level above makes a nice target, and the bottom of the hammer from the Thursday session seems to be massive support. In other words, it is very likely that we will continue to see choppy behavior, but it does look as if we are trying to at the very least stabilize after what has been a very massive move to the downside.
All of this being said, you need to pay close attention to the next couple of days, because they will determine where we go for a bigger move. The US dollar of course has its typical negative correlation to crude oil, so that is also worth paying attention to.
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This article was originally posted on FX Empire