WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen rather hard during the trading session on Monday, testing the $55 level underneath which of course was the scene of the bottom of the gap from the Saudi drone strike. At this point, the market looks as if it is trying to break down and the fact that we are testing a couple of hammers suggests that the market is hell-bent on breaking below. However, there is a ton of support underneath so I suspect that we will see another bouncer to be for the market can truly break down. To the upside I suspect that the blue 200 day EMA is essentially the “ceiling” in the marketplace.
Crude Oil Video 01.10.19
Brent
Brent markets broke down significantly during the Monday session as well, as we continue to test the $60 level. That’s an area that has been a very supportive level and of course the scene of where the gap occurred from the drone strike. Now that we are testing the bottom of this gap, one would expect some type of bounce but the fact that we have been so resilient about breaking down tells me that eventually we probably will. If we do, $57.50 would be your initial target, possibly even the $56 level. To the upside, I suspect that the 200 day EMA which is currently trading at the $64.69 level is a bit of a “ceiling” here as well, just as the WTI market has. I am bearish, but I feel a little bit better about fading rallies at this point.
Please let us know what you think in the comments below
