WTI Crude Oil
The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Tuesday, as we continue to hover right around the $67.50 level. We are in a potential descending triangle, but quite frankly I think the most important thing to pay attention to is the $65 level underneath regardless, because we would more than likely see a massive selling pressure to reach down towards the 200 day EMA. On the other hand, if we turn around a break above the top of the downtrend line of the triangle, we could go looking towards the 50 day EMA above which is just below the $70 level and crawling lower.
Crude Oil Video 18.08.21
Brent markets have also dipped a bit during the trading session on Tuesday but then turned around to show signs of life again. By doing so, the market is likely to see the $70 level as significant resistance, especially considering we gapped below it to kick off the Monday session. However, there is an uptrend line and also a potential descending triangle in this grade that suggests that we may have quite a bit of trouble ahead.
The 50 day EMA currently sits at the $71.82 level and is sloping lower over here as well. At this point, I think there are real questions to ask about the global economy, which of course will have a major influence on Brent. Furthermore, the US dollar strengthening could also bring this market down. While I am not ready to start selling yet, if we were to break down below the $67.50 level, it is very likely that I would be short of this market.
For a look at all of today’s economic events, check out our economic calendar.