WTI Crude Oil
The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Thursday, but then gave back the gains as traders are starting to worry about whether or not OPEC will cut enough. At this point, the market is likely to be very noisy, and needless to say could cause a lot of volatility due to the fact that the $30 level above is massive resistance, just as the $25 area is the beginning of support down to the $24 level. At this point, if we break above the $30 level, it’s likely that the market will make a move towards $34. However, if we break down below the $24 level, the market will then go looking towards the $20 level.
Crude Oil Video 10.04.20
Brent markets initially tried to rally as well but struggled above the $35 level. It’s not until OPEC makes its decision that traders will be able to put in big-money door, but at this point I think it’s setting up for an interesting move, as a daily close above $36 could send this market to look at the $40 level. The $40 level coincides nicely with the 50 day EMA and the bottom of the massive gap that you see on the chart. Ultimately, the market breaks down below the $32.50 level it’s likely that we go to the $30 level. Underneath there, the market could open up all the way to the $25 level after that. One thing is for sure, we are about to get a move.
This article was originally posted on FX Empire
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