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Crude Oil Markets Get Bashed

By:
Christopher Lewis
Published: Feb 8, 2022, 16:48 UTC

Crude oil markets have pulled back rather drastically during the trading session on Tuesday, slicing through short-term support

Crude Oil Markets Get Bashed

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gotten hammered during the trading session on Tuesday as traders step in to take profit. That being said, the market is likely to see a lot of support underneath, but at this time the market looks like it might have a little bit of a pullback ahead. All things been equal, this is a market that I think continues to see itself as being in an uptrend, and we could even drop all the way down to the $85 level. Either way, I have no interest in shorting gold anytime soon, as it has been such a bullish market. Keep an eye on the US dollar, that can be an issue as well, as the markets can diverge completely.

Crude Oil Video 09.02.22

Brent

Brent markets have broken down as well, slamming into the $90 handle. That was the top of the previous ascending triangle that we have formed previously. By breaking out and then breaking down the way we have, it is very interesting to see whether or not we can hold here, because quite frankly I think this is a crucial area. Even if we break the $90 level though, I will not be a seller. The best way to put this is that we are in a massive uptrend, and that has clearly been the case for some time. We are a little bit overextended, so I think this was necessary, but I have a hard time believing that traders will not jump in and try to pick up some type of value in what has been a runaway market for so long. With that in mind, shorting is all that impossible at this point.

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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