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Christopher Lewis
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WTI Crude Oil

The West Texas WTI Crude Oil market has rallied significantly during the course of the trading session on Wednesday but has found the $70 level to be a bit too much to get above, and it is also worth noting that the 50 day EMA sits in the same area. Ultimately, this is a market that had sold off over 8% during the Monday session, and even though we have had a nice bounce, those types of meltdowns typically do not happen in a vacuum. Because of this, I would still be very leery, especially as inventories in America have increased in the United States. (Having said that, so far, the market has ignored that.)

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Crude Oil Video 22.07.21

Brent

Brent markets have also rallied to reach towards the 50 day EMA and wipe out about three quarters of the losses from the Monday session. After that, the market then goes looking towards the previous uptrend line, which of course is a major resistance level just waiting to happen. At this point, the market is likely to see a lot of resistance just above, and really at this point in time is not until we wipe out the $74 level to the upside that I would be completely confident of going long. Beyond that, just as I said in the WTI grade, these types of wipe out moves typically are not “one-off”, so at this point we need to be very careful about sudden selloffs. The market will continue to pay close attention to the delta variant as well, so that could come into play. The market will more than likely continue to be choppy.

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