The WTI Crude Oil market experienced a slight retreat during Wednesday's trading session, which could be attributed to a potential overextension in the market. Despite this pullback, the overall sentiment remains bullish, as evidenced by the upside breakout of the 200-Day Exponential Moving Average. The breach of this key technical level suggests the possibility of a sustained rally in the future, though it's worth noting that technical traders might step in if the market pulls back to the 200-Day EMA.
Looking ahead, it's reasonable to anticipate that the market will attract buyers on any pullbacks. Traders seem to be shifting their focus towards the impact of OPEC's production cuts, which could continue to exert upward pressure on crude oil prices over the longer term. However, this doesn't imply that the market will rise steadily without any hiccups. Short-term pullbacks are expected to occur intermittently, offering opportunities for value-seeking traders. Presently, there is no interest in shorting the market. However, a breakdown below the $75 level might provide a case for a bearish argument.
The Brent markets also experienced a touch of negativity, with prices hovering just above the 200-Day EMA. As with WTI Crude Oil, the 200-Day EMA is a crucial indicator that many traders pay close attention to. Brent's market movement typically aligns with WTI Crude Oil, and therefore watching one without the other isn’t advised.
Despite the choppy and noisy behavior witnessed in the Brent market, the overall outlook remains positive. Traders are likely to attempt to push the market towards the $85 level in the near future. A successful breakthrough beyond this level could lead to a surge in momentum and significantly impact spell mode trading. On the downside, should the market break below the $80 level, it might trigger potential selling opportunities.
In the end, the crude oil markets experienced a short-term pullback from major resistance during Wednesday's trading session. While this could be a sign of temporary exhaustion, the overall outlook remains bullish, particularly with the WTI Crude Oil market breaking above the 200-Day EMA. Buyers are expected to step in on pullbacks, supported by the market's focus on OPEC's production cuts. Meanwhile, Brent markets may witness choppy behavior, but a potential push towards the $85 level is on the horizon.
Ready to trade the WTI/USD exchange rate? Here’s a list of some of the best Oil trading brokers to check out.