WTI Crude Oil
The WTI Crude Oil market continues to show signs of volatility as the market simply has no idea what to do with itself. Is it going to be a supply question, or is it going to be a demand question? That is essentially what people are trying to sort out, but I do believe that the technical signal is still to fill this gap near the $41 level. Yes, I realize it makes no sense but in the middle of the worst economic crisis that the United States has ever seen, the S&P 500 simply cannot fall so there is that as well.
Crude Oil Video 04.06.20
Brent markets have run into a bit of a brick wall at the $40 level, which should not be a huge surprise considering that it is a large, round, psychologically significant figure and an area that was the bottom of the gap that the market is now targeting. Simply put, if we can break above the top of the candlestick for the trading session on Wednesday, then the market is free to go looking towards the $45 level above which would fill the gap.
The 200 day EMA is reaching towards that level, so I think it makes quite a bit of sense that we would see traders turn around at that region. Ultimately, I believe this is a market that will show sooner or later that there are sellers above, but right now the mantra is “everything is awesome” even as the world slows down drastically.
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This article was originally posted on FX Empire