Crude Oil Markets Continue to Recover

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market is rallying a bit during the trading session on Wednesday as we continue to recover from the uptrend line bounce. That being said, we still have a long way to go before we recover completely, but at this point, it is obvious that the market still is threatened, so it will be interesting to see if we revisit the uptrend line. The demand for crude oil could be falling, as we are looking the economy is slowing down around the world.

If we continue to see a lot of concerns around global growth, that is like kryptonite for oil. A lot of this is going to come down to that factor, and at this point, you can also make an argument for a descending triangle, so caution is the better part of valor.

Crude Oil Prices Forecast Video 14.04.22

Brent Crude Oil Technical Analysis

Brent markets have rallied as well but are not looking much different. All things being equal, this is a market that I think will also have to pay close attention to global growth, but Brent may be a bit more sensitive to the entire Russian situation, as it is more of a global benchmark. That being said, the 50 Day EMA has offered support, and therefore we need to recognize that a breakdown below the uptrend line would negate all of that, we could go much lower at that point.

The market breaking above the top of the candlestick during the session on Wednesday would be a good sign, as it could open up the possibility of a move to the $110 level. At this point, I think the only thing we can count on is a lot of volatility.

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