WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied a bit during the course of the trading session on Friday, reaching towards the $74 level. That being said, the market has recently made a “higher high”, and therefore I think short-term pullbacks will more than likely come into the picture. The 50 day EMA is curling higher and is sitting just below the $70 level, so I think that it is only a matter of time before the value hunters come back into the picture. That being said, if we were to turn around and break down below the $67.50 level, then things could change as it would be very negative and could open up a bit of a “trapdoor opening.”
Crude Oil Video 27.09.21
Brent markets have also rallied during the course of the trading session on Friday as well, as it looks like we are ready to go looking towards the $80 level. We recently made a “higher high”, which of course is a very bullish sign, but we have rallied quite significantly over the last three days, so it makes a certain amount of sense that the market pulls back only to find value. The $75 level underneath would be massive support, and as a result I think value hunters will come back into the picture.
Regardless, I think it is obvious now that you cannot be a seller of the oil and it certainly looks as if it is going to continue to find plenty of reasons to go to the upside. The US dollar falling would help, but quite frankly I think it has detached itself from the correlation to the greenback at this point as demand has become such a major issue.
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This article was originally posted on FX Empire