- The WTI crude oil market has pulled back just a bit as we continue to see the $65 level attract a lot of attention.
- I was a bit surprised to see how aggressive buyers had gotten during the Monday session in what is a very obvious barrier to overcome.
- Now, having said that, I also think you have a situation where if we could break above the 50 day EMA, it may trigger bigger buyers, people willing to step in and get aggressive.
I don't know if that's going to be the case, but it is the alternate scenario, if you will, that I'm watching. The size of the candlestick for the Tuesday session reaffirms the bearishness of this market. And I do think that eventually we will go looking to the $62 level.
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On a Move Lower
Anything underneath there opens up the possibility of a drop to the $60 level. Volume is going to be a bit of a problem at this time of year, as most of the larger traders are away on vacation. We are just stuck in this weird malaise and not really knowing where we want to go. Part of it is the fact that Russia, OPEC and the United States are all flooding the market with supply, and there are concerns about an economic slowdown and trade wars if they continue, that all puts pressure on oil because there could be less demand as less product is moved from border to border. Ultimately speaking, this has been a very ugly summer, but really at this point in time, I think we're trying to find balance somewhere between the $65 level and maybe the $62 level underneath, which oil does from time to time, it just sits in range. We are basically in the middle of that range right now.
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