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Crude Oil Markets Bounce Slightly

By:
Christopher Lewis
Published: Apr 8, 2022, 16:28 UTC

Crude oil markets have bounced a bit during the trading session on Friday, as we are testing major support.

Crude Oil Markets Bounce Slightly

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has fallen initially during the trading session on Friday but also turned around to show signs of strength again. At this point, I think we are simply trying to stabilize a bit, so if we can break down below the lows of the week, then it could open up significant selling pressure, perhaps sending WTI down to the $90 level.

Alternately, if we can break above the 50 Day EMA, we may “swim against the current”, to show signs of life, perhaps opening up the possibility of a move to the $100 level, maybe even the $105 level. Because of this, the market is going to continue to see a lot of volatility but sooner or later, we should get some type of impulsive candlestick that we can follow.

Crude Oil Prices Forecast Video 11.04.22

Brent Crude Oil Technical Analysis

Brent markets initially pulled back during the course of the trading session on Friday but have found support near the $100 level. By turning around and forming a bit of a hammer, then it is likely that it suggests that we could get a bit of a bounce. However, the Thursday candlestick being broken to the downside would open up the possibility of a major sell-off, perhaps reaching the $95 level, possibly even the $90 level. That being said, there is a certain amount of demand destruction going out there with the higher prices, so as long as that continues being an issue, the market will continue to see a lot of volatility. Furthermore, you should pay close attention to this trend line because it could be a major influence on what happens over the next week or so.

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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