WTI Crude Oil
The West Texas Intermediate Crude Oil market has shown itself to be rather resilient during the trading session on Tuesday as we reached towards the $40 level but only found buyers at that point to turn around and reach towards the top of the gap yet again. The 200 day EMA sits just above so I think that will continue to cause major issues, right along with the 61.8% Fibonacci retracement level above there. All of those things at the same area should continue to cause major issues, so I do not think it is easy to break out from here. However, if we get a daily close that is significantly above the 200 day EMA and the 61.8% Fibonacci retracement level, it opens up the door to the $49 level.
Crude Oil Video 08.07.20
Brent markets of course are following the same trajectory as they typically do, with a lot of attention being paid to the $43 level. However, we have not filled the gap in this market, so we may have some “catching up” to do in order to set things straight. Ultimately, I do believe that this is a market that eventually tests the top of the gap, and possibly even the 200 day EMA which is just above there. I think that this market will probably lead the way for a potential break out in the WTI market, but at this point at the very least I would anticipate that Brent will outperform the WTI market, solely based upon the fact that we have yet to fill the gap. As we sit between the 50 and 200 day EMA, that normally makes for pretty choppy trading.
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This article was originally posted on FX Empire
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