Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Oil Continued to Find Buyers on Dips

[ad_1]

Any short-term dips should be viewed as buying opportunities until we reach the top of the rectangle.

Advertisement

  • Initially, the West Texas Intermediate Crude Oil market retreated a little during Monday’s trading session but eventually found support near the 50-Day EMA, indicating a resurgence of activity.
  • It seems apparent that the market is striving to reach the top of its range, but the question now is whether the market can surpass this level or if there will be enough selling pressure to keep it within the same consolidation.

What catches my attention in this region is that the market appears to be maintaining its sideways movement, but it’s also worth noting that we’re gradually experiencing higher lows. If this trend continues, it could signal that buyers are about to drive this market towards an upward trend. Nonetheless, caution is advised, and it may not be the best idea to risk too much in this market, at least for now. A daily close above the 200-Day EMA would be an extremely positive sign.

WTI Crude Oil chart

  • At the start of Monday, Brett markets experienced a similar pullback to the 50-Day EMA but quickly rebounded, indicating signs of revival.
  • The 200-Day EMA is situated just above the $89 level, which marks the peak of our overall consolidation area.
  • Breaking above this level could open the door to a potential increase to the $95 level.

Any short-term dips should be viewed as buying opportunities until we reach the top of the rectangle. At that point, we will wait to see if an exhaustion candle forms, which would be a signal to short the market, or if we finally break out.

The market’s lows have been gradually increasing, which could be a sign that a breakthrough is on the horizon. It remains to be seen whether this will happen now or later, but many experts believe that crude oil prices will rise throughout the summer. The idea that higher oil prices are coming is backed up by China reopening, and of course the “driving season” in the United States and Europe. I believe this more likely than not is going to be the case, but at this point, as far as buying is concerned it comes down to timing. I will be adding to my position as it works out my favor, but right now I think we’ve got to wonder whether or not that ceiling above holds.

UK Brent Oil chart

Ready to trade WTI Crude Oil FX? We’ve shortlisted the best Forex Oil trading brokers in the industry for you.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.