[ad_1]
Market participants will need to stay vigilant and react swiftly to capitalize on these potential shifts in the oil landscape.
- West Texas Intermediate (WTI) crude oil exhibited a significant rally during the Friday trading session, inching closer to the significant $72 level.
- This point coincides with the midpoint of the recently formed triangle in the trading chart, sparking intrigue in market watchers.
- The dynamic movement of the oil market witnessed it slice through the triangle in opposing directions, making it crucial to monitor the market’s reaction to this general range.
The 50-Day Exponential Moving Average positioned above may pose a bit of resistance. Traders should be prepared for this potential hurdle in the market. Despite the recent surge, the presence of exhaustion signs could catalyze selling. Given the current market scenario and the recent bullish movement, buying at this juncture might not be recommended. The global demand landscape continues to be encumbered by a plethora of concerns; however, the constricting supply cannot be overlooked. These factors make the rest of the summer ripe for continued choppy volatility.
Turning to Brent, the market has found itself brushing against the triangle’s lower edge from which it had earlier descended. Brent’s technical setup appears to be much clearer compared to WTI, despite the bullish sentiments taking hold over the past few days. Potential signs of exhaustion between the current level and the 50-Day EMA could trigger more selling, possibly driving Brent well below the $75 threshold again.
Should Brent’s value tumble below this level, it could potentially drop further to the $72.50 mark or even the $70 mark. Contrarily, breaking above the 50-Day EMA might stimulate an upward thrust toward the $80 level. The $80 mark carries considerable psychological significance and is likely to be a hotspot for options barriers. Surpassing this level could potentially trigger a Fear of Missing Out (FOMO) trading spree, possibly propelling the market toward the 200-Day EMA, which has recently slipped below the critical $85 level.
However, irrespective of the direction of movement, both markets are expected to encounter a considerable degree of volatility. Market participants will need to stay vigilant and react swiftly to capitalize on these potential shifts in the oil landscape. In conclusion, the upcoming period will be crucial in determining the future trajectory of both WTI and Brent oil markets.
Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Forex Oil trading platforms worth trading with.
[ad_2]