- The West Texas Intermediate (WTI) Crude Oil market showed some gains during Thursday's trading session, indicating an attempt to reach the $80 level again.
- It's worth noting that the market is likely to view the 200-Day EMA (Exponential Moving Average) below as a potential support line.
- This is something important to keep in mind. If a rally occurs from this point, there's a chance it could reach the $85 level while still being in a consolidation phase. And if we manage to break beyond $85, it could lead to even higher prices.
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Remember, Saudi Arabia's government recently decided to cut production by 1 million barrels per day and extended this measure. Right now, the focus is more on supply than demand. As long as OPEC members are committed to reducing supply, it will eventually impact the market.
Looking at the Brent markets, they also saw a rally during the day, showing signs of recovery. The 200-Day EMA is an important factor here as well. The 50-Day EMA entering the scene hints at a possible "golden cross," which the market might interpret as a target for the longer term. If a breakout occurs, the $90 level could be the goal. Conversely, if we slip below the moving averages, the $80 level below becomes a target.
Sudden Fluctuations Can Catch You Off Guard
All things considered, the attempt at recovery seems evident. The weakening of the US dollar during the day might have contributed to this positive movement. Overall, the market appears to be a mix of noise and optimism. Nonetheless, it's crucial to be careful when sizing up your positions at this time of year. The trading volume tends to be thinner due to many major traders being on vacation. As a result, sudden fluctuations can catch you off guard.
At the end of the day, the Crude Oil market is navigating its way through ups and downs. While the $80 and $85 levels are crucial markers, the impact of supply adjustments by OPEC remains a dominant factor. The recovery attempts are promising, backed by supportive technical indicators. Yet, the ongoing market noise and thin trading volume warrant a cautious approach to position sizing. As the market continues its journey, keeping an eye on both technical and external factors will be key to navigating the twists and turns.
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