WTI Crude Oil
The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Monday to break above the 200 day EMA. Having said that, the market still has a lot of resistance above at the $43.50 level as well. I think this rally is probably short for this world, and therefore sellers will probably step back in and punish those who would trade in such a significant impulsive move. Ultimately, if we break down below the 50 day EMA which is currently at the $39.75 level, then we probably go looking towards the bottom of the range near the $36.25 level.
Crude Oil Video 17.11.20
Brent
Brent markets rallied right into the 200 day EMA, showing signs of bullish pressure yet again, but at this point in time I think this is a market that continues to see a lot of resistance above and therefore I think it is only a matter of time before we roll over again. The 50 day EMA underneath is near the $42 level, and therefore it might be a bit of a target and perhaps even support. If we were to break down below there, then the market likely goes down towards the $39 level. That being said, it is difficult to imagine that just because there is a vaccine all of the sudden, we have huge demand for crude oil. Buyers who have stepped in in the last 24 hours are more than likely short-term buyers more than anything else and once the fundamentals come back into play it is likely that we will see selling again.
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