- It looks to me like the crude oil market is starting to really take off and at this point you have to look at it through the prism of a short-term move to the 200-day EMA.
- We'll have to wait and see whether or not there's any follow-through at that, but we have been accumulating for some time and with that being the case I think you continue to just look at dips as a potential buying opportunity.
- The 75 level should continue to offer a bit of support right along with the 50 day EMA.
Brent and WTI Look the Same
In the WTI crude oil, I think the 200 day EMA is your initial target. After that you could look at about $79. The Brent is very much the same situation, looks very healthy at this point and I am more than willing to step into this market as well. Ultimately, I do think that we will go higher, reaching the 200 day EMA again, but whether or not that actually gets broken remains to be seen. It is closer to some resistance over here. So, I think you have to kind of look at that through that prism as well. Either way, no interest in shorting crude oil. We have formed a massive consolidation and accumulation phase, and now It looks as if we are going to continue to find every dip as a potential buying opportunity.
Loose monetary policy around the world is probably the culprit here, and as a result, I think as long as that is going to be the case, we have a situation where traders will look for value, take advantage of it, and move forward. In fact, with a little bit of imagination, you can even start to think about an inverted head and shoulders in both of these charts. So that might be something worth paying attention to as well.
In the end, I believe the crude oil is starting to react to not only a little bit of technical analysis, but the fact that it had gotten so cheap. Furthermore, there are some questions as to whether or not some of the oil producers have been in the futures markets trying to boost price, and there are always concerns about conflict in the Middle East and attacks in the Red Sea that diverts shipping.
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