Crude Oil Markets Looking for Support

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been very noisy during the trading session on Tuesday, to reach down towards the $83 level before bouncing a bit. That being said, the market has ended up forming a bit of a hammer, but at this point in time I think that if we break above the $85 level it is likely that we could go much higher. I think volatility will continue to be an issue, due to the fact that we have seen a lot of US dollar volatility and of course we have the Federal Reserve meeting on Wednesday that will throw the doll around. Nonetheless, this is a market that should continue to find buyers.

Crude Oil Video 26.01.22

Brent

Brent markets have initially dipped during the trading session on Tuesday but have found buyers after the dip. That being said, the market is likely to continue to see a lot of noisy behavior, but we are still very much in an uptrend. That being said, the market is likely to continue seeing a lot of support underneath, especially near the $85 level. Because of this, I believe that plenty of “buy on the dip” traders are out there as we will continue to see demand for crude oil pick up as the world reopens. With this, I am cautious about my position sizing, but I do like the idea of buying value as it occurs. All things been equal, I do believe that we go looking towards the $90 level but it may take a little bit of time to get there.

For a look at all of today’s economic events, check out our economic calendar.