(MENAFN- Daily Forex) Forex Brokers We Recommend in Your Region 1 Read full review Get Started
The crude oil markets experienced a tumultuous start to the week, with initial declines being countered by a resurgence in buying interest. This noise was evident in both the West Texas Intermediate and Brent markets, highlighting the ongoing volatility and uncertainty in the oil sector Crude Oil: A Fluctuating Market
The West Texas Intermediate Crude Oil market witnessed a drop during Monday's trading session, only to find substantial support at lower levels. This pattern suggests that the market is in a phase of consolidation, with a "buy on the dips" approach seeming increasingly viable. However, a notable technical development is the emergence of a "death cross," indicated by the 50-Day Exponential Moving Average breaking below the 200-Day EMA. This could signal potential bearish momentum in the near term.
The chart analysis reveals that the $72.50 level is acting as a significant support zone. If the market were to reverse its downward trajectory and ascend, the next target could be the $79 level, extending up to $80, which is poised as a resistance area. A breakthrough above this range could catalyze a bullish surge, propelling the market to higher levels. Nonetheless, traders should brace for continued choppiness in the marke .Brent Crude Oil: Seeking Direction
Similarly, Brent crude also experienced a pullback in Monday's session, mirroring the pattern seen in the WTI market. The $80 level is emerging as a pivotal point, potentially drawing prices towards it. The market is expected to oscillate within a range, but a decisive move above the $82.50 level could inject upward momentum, possibly driving prices towards the 200-Day EMA.
Underpinning this support is the $77.50 level, which has been a stronghold for the market. The ongoing consolidation phase seems set to persist, reflecting the market's search for a clear direction. This state of flux is understandable, given the anticipation surrounding OPEC's decision on whether to adjust production levels. Additionally, the broader economic context, particularly the global demand for energy and the potential for a downturn, is adding layers of complexity to the market's trajectory.
Ultimately, both WTI and Brent crude oil markets are navigating a landscape marked by technical shifts and external economic factors. The impending OPEC decision and global economic indicators will be critical in shaping the future trajectory of these markets. Traders should remain alert to these developments, as they could significantly influence market behavior in the upcoming period.
Ready to trade
WTI Crude Oil FX ? We've shortlisted
the best Forex Oil trading brokers
in the industry for you.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.