WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has bounced a bit during the trading session on Friday as the lower trendline has offered a little bit of support. That being said, I don’t necessarily think this is a market that I want to trust right now, so I’m on the sidelines. There’s nothing wrong with being on the sidelines in an environment that is so ridiculous. Currently, crude oil is the only commodity that has been rallying, so you should keep that in mind if you are going to trade this market. In other words, it may start to fall apart as well because of the concern of global slowdowns.
Crude Oil Prices Forecast Video for 04.07.22
Brent Crude Oil Technical Analysis
Brent markets also have bounced just a bit but struggled at the 50 Day EMA. If we can break above the shooting star from the Wednesday session, then we may have something going. Until that happens, I’m not overly impressed with the Brent market, although it is hanging onto a major uptrend line and that is probably something worth paying attention to. Nonetheless, it looks like we just made a “lower high”, so we may very well test that trendline yet again.
Expect a lot of noisy behavior, but ultimately I think that we will probably break down from here as well. After all, even food base commodities are dropping in price. Oil has hung on for quite some time, but if we do in fact get a global recession, it’s very difficult to imagine how oil will fare well in that environment. Because of this, I’m on the sidelines and waiting for a bit more clarity. Sometimes, being on the sidelines is the only position you should have.
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This article was originally posted on FX Empire