Crude Oil Markets Get Hit to Kick Off the Week

West Texas Intermediate Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the course of the trading session on Monday to reach down to the 50 Day EMA. Ultimately, this is a market that I think continues to see a lot of noisy behavior, because quite frankly we are fighting between a potential slowdown around the world, which could drive down demand, but at the same time, we have to worry about supply as the Russians are locked out of a lot of markets. All things being equal, inflation is also a major contributor as well, which almost always shows up in the crude oil markets as well.

Crude Oil Prices Forecast Video 03.05.22

Brent Crude Oil Technical Analysis

Brent markets also have fallen during the trading session on Monday, to reach the 50 Day EMA. The market is likely to continue to see a lot of noise and support underneath the uptrend line that I have drawn on the chart. The market is likely to continue to be very noisy, as headlines will continue to dance around the idea of supply and demand, and of course whether or not the global economy is going to be healthy enough to continue to see demand pick up.

If not, this is a market that will fall apart. The market breaking down below the uptrend line would be the bottom opening up, perhaps sending the market down to the $95 level. On the other hand, if we can break above the shooting star from the Friday session, that would be a very bullish sign and send oil much higher.

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