Crude Oil Plunges

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen rather hard during the trading session on Monday to reach towards the $100 level. This is an area that would obviously attract a lot of attention, so this could be a very important level to determine where we go next. Ultimately, this is a market that I think needs to hold the $100 level or at least close to it in order to continue the uptrend.

On the other hand, if we break down below the 50 Day EMA, I believe at this point the market would break down rather significantly, and it would end the trend. The size of the candlestick certainly suggests that we are going to continue to see further downward pressure.

Crude Oil Video 15.03.22

Brent

Brent markets have also sold off during the trading session, plunging towards the $104 level. At this point, it looks as if the market will probably go looking towards the $100 level, and maybe even meeting up with the 50 Day EMA. All things being equal, this is a market that I think will continue to see a lot of volatility, but if we do finally break down below the $100 level, it is likely that we will see this market plunge. I think we are reaching a fairly significant point in the market, and therefore it will be interesting to see if we can keep this trend going. If we do not, we could see a significant drop. I would anticipate that value hunters probably come back in rather soon, but whether or not they have the momentum is completely different question.

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