Ultimately, the energy markets are facing significant challenges, with the global slowdown affecting demand and OPEC actively cutting production to stabilize prices.
- The West Texas Intermediate (WTI) Crude Oil market has been exhibiting a great deal of volatility, going back and forth during Thursday’s trading session.
- The market is currently hovering around the 200-Day EMA, a crucial technical indicator that many traders keep a close eye on. If the market breaks above the EMA, it would be a positive sign for bullish traders.
- However, there is still a significant gap below that needs to be filled, and given the reason for the gap was an emergency production cut, it is likely that the market will eventually fill the gap.
OPEC has been actively cutting production to try to stabilize prices, but there are concerns about the lack of demand. If the trend of stagnating demand continues, it could lead to further price drops in the long run. At the moment, the market is showing signs of weakness, and if it breaks down below the last couple of candlesticks, it may be an opportunity to short this market for a short-term move. Whether or not the gap is filled remains to be seen, but if the market breaks above the 200-Day EMA, it could reach the $90 level.
In Brent markets, the price has been fluctuating around the $85 level, with the 200-Day EMA just above the $87 level, offering a significant barrier. If the market can break above the $90 level, it is possible to reach $95. However, there is also a gap underneath, extending down to the $80 level. If the market breaks down below the last couple of candlesticks, it may head lower. With a global slowdown potentially causing more negativity in the energy markets, Brent markets are also facing volatility and uncertainty.
Both WTI and Brent markets are experiencing a great deal of fluctuation, which can make trading more challenging. The lack of an impulsive candlestick makes some traders wary of putting money into this market. It is a market that is showing signs of weakness, and traders need to be cautious and closely monitor technical indicators and market trends to make informed trading decisions.
Ultimately, the energy markets are facing significant challenges, with the global slowdown affecting demand and OPEC actively cutting production to stabilize prices. This is a market that requires traders to exercise caution and keep a close eye on the technical indicators and market trends to make informed decisions.