(MENAFN- Daily Forex) Crude oil markets embarked on a volatile journey during Thursday's session, reflecting the characteristic noise and volatility that often accompany this commodity.

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The West Texas Intermediate (WTI) Crude Oil market initially made an attempt to rally, only to find itself grappling with resistance around the $82.50 level. Concurrently, there is substantial support visible at the 200-Day Exponential Moving Average . The market seems to be shaping a pattern reminiscent of an inverted hammer, akin to the previous session's price action.

A breakout above the high point of the inverted candlestick from Wednesday could potentially lead the market to target the 50-Day EMA above. The $85 level looms ahead as a pivotal area of interest. Traders will closely monitor this juncture, as a breach could pave the way for an extended move towards the $90 level. Conversely, a dip below the $80 level could trigger significant selling pressure.

In the Brent oil markets, a similar narrative unfolds. Initial attempts at a rally gave way to hesitancy, with the market oscillating around the 200-Day EMA and the psychologically significant $85 level. This level is noteworthy for a gap in the market, and now that the futures markets have filled it, the question is whether it will serve as a support or resistance zone to Buy Oil

• A breakdown below the hammer formation from a couple of months ago, located just below current levels, could potentially send the market tumbling towards the $80 level.
• Conversely, a breakthrough above the 200-Day EMA may set the stage for an ascent towards $90 and ultimately $93.

The prevailing sentiment suggests that the market is attempting to establish a consolidation zone, and it's possible that we find ourselves at the lower boundary of this range as we navigate the longer-term trajectory. Because of this, I am SLIGHTLY bullish, but not willing to put a ton of money into the market.

At the end of the day, the crude oil markets exhibited their characteristic volatility and uncertainty during Thursday's session. The pivotal levels of $82.50 in WTI Crude Oil and $85 in Brent Crude are closely monitored, potentially shaping the future direction. While the inverted hammer pattern suggests a degree of uncertainty, a clear breakout above or below these levels will likely provide valuable insight into the market's longer-term prospects.

Potential signal: I am willing to buy oil here, but I would use something like 1⁄4 the usual size. The stop would be $80 level. I am aiming for $85.12 above.

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