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Crude Oil Markets Continue to Find Buyers on Dips During the Week

By:
Christopher Lewis

The crude oil markets fell a bit during the course of the trading week, but then stabilized enough to show signs of life as buyers started supporting them.

Crude Oil Markets Continue to Find Buyers on Dips During the Week

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially dipped during the trading week, only to turn around and show signs of life again. By doing so, the market is likely to see buyers every time we get a bit of a dip, as we have a massive uptrend in effect. Demand for crude oil should continue to be a major driver of price, and with that being the case the market is likely to be one that continues to go higher. We ended up forming a hammer for the week, after we dipped below the crucial $90 level, which is classic technical analysis for a market that is ready to go even higher.

WTI Oil Video 14.02.22

Brent

Brent markets initially fell during the trading session to test the $90 level before bouncing. We are at the top of the channel that we have been forming for a while, and it does suggest that we are perhaps getting ready to break out rather significantly. If we were to turn around a break down below the $90 level, then it is possible that we could go looking towards the $86.50 level. Ultimately, this is a market that is going to continue to be driven higher over the longer term based upon demand and the reopening trade.

If we were to break down below the $86.50 level, then it is possible we could go looking towards the $80 level underneath, maybe the 50 week EMA. That being said, it does not seem like we are going to have an easy route falling, so all things being equal it should be a “buy on the dips” scenario.

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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