Crude Oil Markets Test 50 Day EMA

WTI

The West Texas Intermediate Crude Oil market has fallen hard during the trading session on Tuesday again to reach the 50 Day EMA. That being said, the market is looking very likely to see a bit of support just below, so I will be paying close attention to it. If in fact, we do bounce from here, it would be a relatively textbook pullback into support and recovery. However, there are a lot of moving pieces geopolitically at the moment, and of course, there are concerns about whether or not the demand will pick up in what looks to be a slowing economy.

With that being said, if we can recapture the $100 level, then I will be buying WTI. If we break down below the 50 Day EMA on the daily close, we could find this market looking towards the $85 level rather quickly.

Crude Oil Video 16.03.22

Brent

Brent markets look very much the same, as they have fallen to reach the 50 Day EMA as well. Brent has just broken below the $100 level, which of course has a certain amount of psychology attached to it. In that scenario, I think we need to hold the line here relatively soon, or we risk having Brent collapse. I do not necessarily think it will completely come undone, but clearly, we have seen a lot of damage to pricing as of late.

Breaking back above the $100 level is the first step to recovery, followed by a break above the highs of the trading session on Tuesday. If we can do that, then the longer-term uptrend and oil will continue. It should be noted that the OVX, which is the Oil Volatility Index, is extremely high at the moment so this is going to be hard assets to trade.

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