WTI crude oil
The West Texas mid-market crude oil market did next to nothing during Tuesday’s trading session as the market tries to determine where it is going next. We are sitting just above the 50-day EMA so it is likely that we can continue to rise, perhaps to hit the $ 75 level. If we manage to break above that level we will be able to continue the overall uptrend, but at this point I think we probably have some work to do. The $ 70 level should be favorable as it is a large, round, psychologically significant number and, of course, the 50-day EMA is passing through it.
That being said, I like the idea of buying short term withdrawals as the uptrend should continue to push this market higher. In general, this is a market that I think will be noisy but certainly bullish. If the US dollar starts to fall a bit, the oil markets are likely to move in the opposite direction.
Crude Oil Video 07.28.21
Brent markets were positive during the trading session as we continue to move closer to the $ 75 level. The $ 75 level is of course a big, round, and psychologically significant number, and it could offer some resistance. Pullbacks at this point could see this market looking for pullbacks in order to become long again as value should kick in. However, if we were to fall below the 50 day EMA, it could be a very negative turn of events and send this market towards the $ 67.50 level. With that, I remain optimistic, but I also recognize that we may experience an occasional setback in the short term.
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This article originally appeared on FX Empire