WTI Crude Oil
The West Texas Intermediate Crude Oil market has pulled back a bit during the trading session on Tuesday, showing signs of exhaustion. At this point time, the market is trying to break down below the 200 day EMA, but that indicator is flat and therefore it looks as if we are ready to go lower and if we do break down below there, the market continues to go towards the 50 day EMA. All things being equal, we have been bouncing around in the same range for a while and therefore I think it does make sense that we have pulled back from this region as it is the top of the overall trading range in general.
Crude Oil Video 18.11.20
Brent markets tried to break above the 200 day EMA, but then pulled back significantly. Ultimately, the market has seen a lot of back and forth and quite frankly I think that continues to be the case going forward as the global economy is almost certainly going to slow down with the lockdowns we see. Yes, there is a vaccine, but it is not coming for several months if not another year or two. Furthermore, the demand for crude oil simply is not there and we are going to start running out of places to store the crude oil yet again. I think the market probably goes looking towards the red 50 day EMA underneath near the $42.15 level, and if we were to break down below there then the market is likely to go towards the $39 level.
All things being equal, this is a market that I think is getting a bit heavy and it is only a matter of time before we break down again. If the US dollar strengthens that will also add more weight to that move.
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