Crude oil markets exhibited a mixed picture during Wednesday's trading session, prompting questions about the sustainability of their recent momentum.
The West Texas Intermediate Crude Oil market experienced an initial surge in Wednesday's session, followed by a quick retreat. This back-and-forth movement suggests that the market is in for some turbulent trading ahead. However, it's clear that there is a stronger desire for upward movement than downward. A notable technical indicator, the 50-day Exponential Moving Average, lies just below, providing some support. In the previous session, the candlestick bounced directly from this level, emphasizing its significance.
Should the market break below the 50-day EMA, another support level in the form of the 200-day EMA may come into play. This level could potentially serve as a "floor" for the market, although reaching it is uncertain. Conversely, a break above Wednesday's trading range could pave the way for a move toward the $90 price level. This of course is a major round figure, but it is also one that has been broken above before. I have a hard time seeing it not doing so again.
In a similar fashion to WTI, Brent markets attempted an initial rally during the trading session, aiming for the $88 resistance level. Beyond that lies the significant $90 level, which presents another hurdle for the market to overcome. The prevailing sentiment suggests that it's only a matter of time before the market rallies toward these levels.
The Market Continues to Attract Interest
Much like the WTI market, Brent also finds support from the 50-day EMA beneath it, acting as a stabilizing force. Additionally, the 200-day EMA provides an underlying "floor" for the market, reinforcing the notion of an upward bias.
Overall, the crude oil market continues to attract interest, and it seems likely that it will maintain its upward trajectory. Geopolitical concerns in the Middle East may further bolster this trend, with the potential for supply disruptions due to escalating tensions.
In the end, the crude oil markets are characterized by short-term fluctuations but show a general inclination toward higher prices. Technical indicators, including the 50-day and 200-Day EMAs, offer support levels to monitor. The $90 price level is a key threshold to watch, as breaking above it could lead to further upward momentum. Geopolitical events in the Middle East could also have a significant impact on oil prices in the near future.
Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Forex Oil trading platforms worth trading with.