The crude oil markets rallied a bit during the trading session on Friday, reaching towards the crucial resistance levels just above. It looks as if the recovery is still very much intact.
The WTI Crude Oil market broke higher during the trading session on Friday, clearing the 50 day EMA. That’s an extraordinarily bullish sign, and the next barrier that we are going to tackle is the $55 level. If we can clear that, then I think this market can pick up a lot of momentum. Ultimately, I think pullbacks will continue to be bought, with the 20 day EMA, pictured in green on the chart, offering support. The $50 level underneath that is even more supportive as well, and I think that the overall downtrend is starting to become a thing of the past.
Brent markets also rallied to the upside during the day on Friday, breaking above the 50 day EMA. The $65 level above is a target, and I think that eventually we will test that area. If we can break above that area, then I think the market could continue to go much higher. The $60 level underneath will continue to be very supportive, and I think it will be difficult to break down through that level. I look at short-term pullbacks as opportunities to pick up value here, and I also recognize that the Brent market has lead the way for the WTI contract recently, as we have seen it break its downtrend line quicker that the WTI contract could. I think that even if you don’t trade this market, keep an eye on it to give you clues as to where to put your money when it comes to WTI.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.