Crude Oil Market Looks Likely to Pullback

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially shot higher during the trading session on Tuesday but gave back gains to show signs of hesitation. That is not a huge surprise, because momentum is something that we need to pay close attention to, as the market had bounced so hard. With this being the case, I think we are probably going to have to pull back and build up a little bit of a base in order to continue the overall uptrend. Because of this, I think looking for value will continue to be the best way to play this market.

Crude Oil Video 23.03.22

Brent

Brent markets of course look very much the same, as the market found a bit of selling just above the $119 level. I do think that it is probably only a matter of time before buyers jump back in, so I would be especially interested in the $110 region, and then again at the 50 Day EMA. While I do understand that supply of crude oil is a major issue, there will come a point where pricing is so high that it simply erodes demand.

Whether we are there or not is a real stretch, but it is a possibility. The market continues to be very noisy, so you need to be cautious with your position sizing but we are still very much in an uptrend and you should think about it in those terms. That being said, we cannot continue to see these massive parabolic moves without some type of significant destruction.

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