WTI Crude Oil
The WTI Crude Oil market has gone back and forth during the trading session on Tuesday, as we continue to see almost no demand out there. If that is going to be the case, crude oil is still going to be a “sell on the rallies” type of scenario. The $40 level above should be very difficult to overcome, and therefore so is the 50 day EMA. I think that fading signs of exhaustion on short-term charts will continue to be the best way going forward. If we break down below the lows of last week, that is also a very negative sign and we should go looking towards the $35 level, perhaps even followed by the $32.50 level.
Crude Oil Video 16.09.20
Brent markets also are showing very little in the way of going higher, so if we do get a rally, signs of exhaustion will continue to be selling opportunities. If we break down below the lows of last week over here as well, the market should go down towards the $35 level. Further exacerbating the entire situation has been the US dollar, as it has strengthened quite a bit during the trading session. That could kick off the selling in crude oil, but at this point in time I have no interest in trying to buy this market, and therefore the day EMA above is going to be the short term “ceiling” in the market, so given enough time I do think that a lot of sellers would show up in that area. Quite frankly, I do not see a scenario where I would be a buyer at this point in time.
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