Crude Oil Markets Finally Recognizing Gravity

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shown itself to be rather hesitant to continue going higher on Thursday, but that is not a huge surprise considering how overdone the rally seems to have been recently. That being said, it is probably only a matter of time before we get some type of momentum on a pullback, so I think you need to simply look for some type of value underneath. The first candidate would be the $80 level, followed by the 50 day EMA. I do not want to short this market, but I do recognize that it has run far too high in a very short amount of time to continue with the upward momentum that we have seen.

Crude Oil Video 14.01.22

Brent

Brent markets of course have acted very much the same, as we are sitting just below the psychologically important $85 level. Ultimately, this is a market that I think would try to overtake that, but we need to build up a little bit of momentum in the short term. My first area of interest would be on a pullback towards the $81 level, which I think would attract a lot of attention in general. That being said, after that we have the $80 level from a psychology standpoint, and then of course the 50 day EMA which sits just below there. With this being the case, I like the idea of buying dips and waiting for value to appear at a market that is very obviously trying to go much higher, but also needs to find a little bit of momentum building value in order to have more people jump in.

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