Crude oil markets did little during the trading session on Friday again, as we continue to see the 200 day EMA offer a bit of resistance.
The WTI Crude Oil market has basically sat still during the trading session on Friday again, initially dipping towards the $40 level before turning around to rally again. To me it looks as if we are trying to build up the necessary momentum to break out to the upside, and in a sense, I think this is more about the US dollar than anything else. We are seen a lot of the same stuff in the FX markets, so it makes sense that we would struggle to break higher. Furthermore, the 200 day EMA is sitting right there are a lot of technical traders will pay attention to that. If we can break out, the market is likely to go looking towards the $49 level. Underneath, the 50 day EMA continues to be a bit of support.
Brent markets pulled back a bit during the trading session as well but turned around to show signs of life. Ultimately, this is a market that is stuck between the 50 day EMA and the 200 day EMA and sitting in the middle of a massive gap. We have yet to fill the gap so I would assume that we go higher, so I look at pullbacks as potential buying opportunities. If we can break above the 200 day EMA the next target will be the $50 level, followed possibly by the $55 level. The 50 day EMA sits just below the $40 level below and should be relatively supportive if the markets break down in that general vicinity.
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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.