- Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Oil trading brokers worth trading with.The West Texas Intermediate (WTI) crude oil market has continued to show negative behavior, as concerns about the global economy contribute to a lack of demand for energy and crude oil.
- The market has recently broken below the gap that formed when OPEC cut production by 1.6 million barrels per day, indicating that further negativity may be ahead.
- Some analysts predict that the market may move down to the $70 level, which is the next major psychological barrier.
Traders are advised to watch for short-term rallies that show signs of exhaustion, as these may be potential selling opportunities in a volatile market. Despite the production cut by OPEC, the overall economy is shrinking, which will likely continue to impact the demand for crude oil. Until the market breaks above the 200-Day EMA in either grade of crude oil, it may be difficult to take a bullish stance.
Similarly, Brent markets have also fallen, with traders anticipating a move toward the $75 level. The 50-Day EMA is a key resistance level that traders will be watching closely. Short-term rallies are also expected to be sold, particularly at the first signs of exhaustion.
It's worth noting that one crude oil market may provide a signal for the other, as one market will often leave the other. Additionally, traders should be mindful of the impact that a strengthening or weakening US dollar can have on the market, as this can also impact crude oil prices.
Keep in Mind that Geopolitical Events can also Impact the Market
Overall, the crude oil market is likely to remain volatile and negative in the coming days and weeks, particularly as concerns about the global economy continue to impact demand. Traders should be cautious, watching for key technical indicators and keeping an eye on developments in the broader economic landscape. With careful positioning and a cautious approach, traders can potentially navigate this volatile market and make informed decisions based on the information available.
It's important to keep in mind that geopolitical events can also impact the crude oil market. For example, tensions in the Middle East or disruptions in the supply chain can cause prices to spike. Similarly, unexpected changes in the production levels of major producers like Saudi Arabia or Russia can have a significant impact on the market.
TLDR; the crude oil market is likely to remain volatile and negative in the short term, with traders advised to watch for short-term rallies that show signs of exhaustion. With careful positioning and a cautious approach, traders can potentially navigate this volatile market and make informed decisions based on the information available. Additionally, it's important to keep an eye on geopolitical events and the ongoing shift towards renewable energy sources, as these factors could impact the market over the long term.
Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Oil trading brokers worth trading with.