WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has rallied again during holiday trading on Monday, as we have seen 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 overall channel, so a little bit of a pullback could be expected, but nonetheless we are very bullish, to say the least.
One of the biggest drivers of oil right now will be the fact that China is coming back online, after locking down some of the largest cities. If that’s the case, the world’s largest consumer will be looking to buy more oil. Ultimately, this is a “buy on the dips” type of market.
Crude Oil Prices 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, it opens up the possibility of a move to the $120 level. After that, we could go as high as the $129 level. Ultimately, this is a market that I think will have plenty of buyers underneath that are willing to take advantage of the first sign of value. I have no interest in shorting this market and do believe that we go back to the highs again, as there seems to be nothing working against it. Underneath, the 50 Day EMA is massive dynamic support that extends down to a trendline. Because of this, we are at least $13 away from a potential shorting opportunity. In other words, this is a market that has further to go to the upside.
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This article was originally posted on FX Empire
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