WTI Crude Oil During the course of the week, the WTI Crude Oil market initially fell. However, we found enough support near the $37 level to turn things
WTI Crude Oil
During the course of the week, the WTI Crude Oil market initially fell. However, we found enough support near the $37 level to turn things around and form a fairly bullish candle. That being the case, the market ended up forming a fairly bullish candle, testing and clearing the $44 level ultimately. However, there is a significant amount of resistance all the way up to the $50 handle, so it will be choppy on the way higher. Pullbacks probably are the best way to get involved in the market, and quite frankly it will be difficult to do from a longer-term chart such as the weekly chart. Because of this, the markets will more than likely be choppy and better suited for short-term traders who are looking for a slight moves.
Brent
Brent markets initially fell during the course of the week, testing the $40 level for support, and of course finding it as we bounced enough to clear the $45 handle. There is a significant amount of resistance above just as there is in the WTI. Oil market, and having said that it’s likely that it will be easier to trade this market on a shorter-term chart as opposed to the weekly chart. However, it does look like we have quite a bit of noise above, so it is going to be difficult to be able to hang onto that trade. Because of this, we are looking to the shorter-term charts in this market as well we also look at pullbacks as potential value that we can pick up. It is difficult sell this market right now, and quite frankly we are looking for a longer-term sell signal in order to do so.
Even though we’ve seen quite a significant bounce as of late, the reality is that we are still very much in a soft market, when you look at the longer-term move from the original highs back in the middle of 2014. With that, we will always have to be on the lookout for potential negative moves.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.