WTI Crude Oil
The West Texas Intermediate Crude Oil market opened slightly negative on Monday but found support from buyers, aiming to push towards the $75 level. Breaking above this level remains uncertain, but an attempt to do so is highly likely. Whether or not we can will be the next question that the market will be trying to answer.
It is important to note that the $75 level had previously served as significant resistance, which makes it logical for it to continue exerting influence. However, a daily close above this level would mark a psychological victory for crude oil traders and potentially propel the market higher. Until that occurs, the market still needs to prove itself. Pullbacks are expected to find support near the 50-Day Exponential Moving Average and the $70 level.
Brent Oil Market
Similarly, Brent markets experienced a minor pullback during the trading session, only to display signs of support. The $80 level remains a major barrier, and a breakout above that level could attract increased trading volume, potentially leading the contract to target the 200-Day EMA above. This indicator holds significant importance for many market participants, so a successful breach would undoubtedly be a significant event.
On the downside, the 50-Day EMA provides support just above the $76 level, followed by the psychologically significant $75 level. All factors considered, the market is attempting to break out, but considerable work remains. With OPEC determined to reduce production as much as possible, supply and demand dynamics may come into play, potentially driving a breakout. However, as we are still technically within the summer range and approaching its upper limit, caution is advised.
- The WTI Crude Oil market began Monday's session with a slight negative sentiment but found support from buyers, signaling a push towards the $75 level.
- Breaking above this level would mark a significant milestone, while the $80 level serves as a crucial barrier for Brent markets.
- Both markets may experience pullbacks that find support near their respective 50-Day EMAs and psychologically important levels.
- The breakout potential exists, considering the actions of OPEC and the eventual impact of supply and demand dynamics. However, as we approach the upper limit of the summer range, caution is advised.
Traders should closely monitor price movements for signs of sustained momentum and await confirmation before taking decisive actions in these markets.
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