Crude Oil Markets Find a Bid

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially fallen a bit during the course of the trading session, then turned around to break above the $90 level. By doing so, it looks like we are trying to form a bit of a hammer, and I think at this point in time it is likely that we continue to go higher given enough time, but it may take some effort to make a fresh, new high. In the short term, we probably go back and forth with more of an upward tilt than anything else. If we do clear the highs, we almost certainly will go looking towards the $95 level. To the downside, the $85 level should be a “floor the market.”

Crude Oil Video 10.02.22

Brent

Brent markets initially fell to reach down towards the $90 level to kick off the trading session but turned around and snapped back to break above the $91 level handily. At this point, it looks like Brent is going to continue to race to the upside, perhaps even reaching towards $95 in the next couple of weeks, reaching towards the $100 level. To the downside, the 50 day EMA is trying to reach towards $85 level, which is an area that previously had been resistance, and has even shown itself to be supportive.

All things been equal, this is a bullish market, and you should not be shorting anytime soon. Yes, I realize sooner or later there is an argument to be made for the destruction of demand, but we are nowhere near that right now. Furthermore, OPEC continues to slack a bit when it comes to hitting its production targets.

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