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Crude Oil Markets Bounce

By:
Christopher Lewis
Published: Mar 17, 2022, 14:52 UTC

Crude oil markets have bounced a bit during the trading session on Thursday as it looks like we are trying to recover from the most recent selloff.

Crude Oil Markets Bounce

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shown a bit of support in this general vicinity, as we have broken above the $100 level. Because of this, the market looks as if it is ready to go higher, although we have a gap just above that could cause a little bit of resistance. Or likely than not, we will continue to see buyers on dips, as we are trying to build some type of bottoming pattern. I do believe that given enough time we rise though because quite frankly the fundamentals lineup for higher oil pricing.

The one thing of course that could work against oil is whether or not the slowdown in the economy drives down demand. At the end of the day, the most negative thing for higher prices will be high prices. Demand destruction.

Crude Oil Video 18.03.22

Brent

Brent markets have rallied rather significantly during the trading session as well, breaking above the top of the inverted hammer that formed during the previous session. Bouncing from the 50 Day EMA is a strong sign as well, so all things being equal, this is a market that I should go looking towards the $110 level given enough time. If we can break above there, then it is likely that we could go looking towards the highs again. It would not surprise me at all to see this happen, but it is going to take a while to get there, I do not expect it to get there just a handful of sessions like we recently had seen. Because of this, I do believe that buying on pullbacks will continue to be the way forward.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

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.

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