Crude Oil Markets Break Down a Bit Heading Into the Weekend

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Friday, reaching towards the $95 level before pulling back. It is worth noting that we are trying to close towards the bottom of the candle, so that does suggest that we are probably going to pull back a bit. All things being equal, this is a market that I think this is a market that probably needs to pullback in order to find a little bit of value. We had spiked so high after the Russian invasion of Ukraine that maybe we need to work off a little bit of this momentum. This does suggest that perhaps we could go down to the $85 level, where the 50 day EMA is sitting right around the same region.

Crude Oil Video 28.02.22

Brent

Brent markets initially rallied a bit during the course of the trading session as well but gave back the gains to plunge below the $94 level. The $90 level underneath should be supportive, right along with the 50 day EMA being there as well. With this being the case, I think it is only a matter of time before we find value on these dips, all the way down to at least the $85 level.

The alternate scenario with both of these markets is that we could break above the top of the shooting star, from the Thursday session. On the breakout, we could get a massive move higher, but that would almost have to do with the idea of panicking, perhaps something to do with the Ukraine situation.

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