- The West Texas Intermediate Crude Oil market did not move much during Thursday's session, as the market continues to hover under very significant overbought conditions.
- However, the market shot up after the OPEC+ production cuts, breaking above the 200-Day EMA, which is a technically bullish sign.
- This likely attracted a certain amount of attention, and the market will likely continue to look at dips as potential buying opportunities.
Investors should keep in mind that the United States still needs to fill its SPR, and there should be a significant buyer in the market sooner or later. However, global growth will likely slow down simultaneously, causing a lot of choppiness in the market.
Similarly, the Brent markets are hovering at the 200-Day EMA, and if they break above it, the market could look toward the $90 level, an area that will likely be very noisy. If the market breaks above the $90 level, Brent will likely take off to the outside, potentially reaching the $95 level. In this scenario, both grades of oil will likely take off to the upside.
Monitor Key Support and Resistance Levels
Overall, this is a "buy in the dips" type of market, with the 50-Day EMA near the $82 level and a gap extending all the way down to the $80 level. While there may be noise in the market due to the potential for a global slowdown, momentum is driving all of these markets, including oil. Therefore, it's important to follow the momentum and monitor key support and resistance levels.
Investors should also keep an eye on the United States SPR filling, as this will impact the market going forward. Additionally, any news related to OPEC+ production cuts could impact the market as well. Unfortunately for the Americans, it could very well be that they have missed the bottom of the markets.
At the end of the day, the West Texas Intermediate Crude Oil market did not move much during Thursday's session, and Brent markets are hovering at the 200-Day EMA. The market will likely look at dips as potential buying opportunities, but there will be a lot of noise in the market due to the potential for a global slowdown. It's important to monitor key support and resistance levels, the United States' SPR filling, and news related to OPEC+ production cuts. The Brent market of course followed a similar route, as there isn’t a lot of risk-taking out there at the moment.
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