Crude Oil Markets Give Up Early Gains

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially rallied during the trading session on Thursday but gave back the gains in order to show signs of exhaustion. In fact, we are a little bit overextended so it does make a certain amount of sense that we would have to pull back. The $85 level underneath continues to be important, as it is a large, round, psychologically significant figure and should offer a bit of support. After all, this is a market that is very bullish, but it might be a little overextended. Look for value and take advantage of it.

Crude Oil Video 28.01.22

Brent

Brent markets initially tried to rally during the trading session as well but found the $90 level to be difficult to get above. That being said, I think that the market is likely to find plenty of buyers underneath, especially near the $85 level. I do not even think we get that low though, as the market has been so strong for quite some time. Because of this, the market is definitely one that should offer plenty of opportunities going forward but you need to pick your spots. Furthermore, I would keep my position size relatively small and only add when things work out.

The US dollar strengthening of course does nothing to help this market either, as it is priced in those very same greenbacks. With this being Measured in those greenbacks, it makes sense that it will take less of them to buy a bit of oil based upon simple mathematics. If we break down below the $85 level, then we probably go looking towards the 50 day EMA underneath.

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