WTI Crude Oil (US Oil) and Brent, two major oil benchmarks, have experienced limited activity recently with WTI facing a downturn and Brent looking likely to fill the gap underneath.
WTI Crude Oil fell slightly during the trading session, and the 200-Day EMA could continue to pose problems for it. The significant gap beneath WTI has yet to be filled, and it is likely that the market will reach it soon. If WTI breaks down below the $80 level, there is the potential for the market to drop all the way down to the $75.50 region. It is worth noting that the 50-Day EMA is also in that area, which will play a crucial role in the market’s direction. Alternatively, if the market were to break above the high over the last couple of days, it could open the possibility of a move to the $85 level. However, the gap-fill is probably more likely than not before any significant upswing takes place.
Pay Close Attention to Market Movements
Brent, on the other hand, has remained stagnant during trading sessions as it looks set to fill the gap below. OPEC has cut production by 1.6 million barrels per day, which has impacted prices. However, it also suggests that there could be a potential slowdown in demand soon. As economies continue to slow down around the world, it is very likely that the demand for crude oil could suffer, but at the same time, production cuts have excited investors. The 200-Day EMA is expected to act as a significant resistance, making it less likely that the market will become aggressive. But if Brent were to break above the $90 level, it could look to reach the $95 level, which had a lot of selling pressure in the past. Therefore, the $95 level is worth watching closely as it could define the market’s future trend.
TLDR; both WTI Crude Oil and Brent have experienced minimal activity during recent trading sessions. WTI is facing a downturn and could drop to the $75.50 region if it breaks down below the $80 level, while Brent is looking likely to fill the gap below. The 200-Day EMA is expected to play a crucial role in both markets, acting as significant resistance. It is worth noting that if Brent were to break above the $90 level, it could look to reach the $95 level, which is a potential trend-defining area. However, with the potential for volatility to return to both markets, it is essential to pay close attention to market movements in the coming weeks.
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