WTI Crude Oil and Brent markets both rally during the session on Wednesday, bouncing from an uptrend line that has shown significant importance over the longer term. I think that the markets are going to continue to find buyers, because quite frankly we have seen so much in the way of buyers jumping into the market.
The WTI Crude Oil market initially fell during the trading session on Wednesday, testing an uptrend line that has been important for some time. By doing so, and of course bouncing, the market looks as if it is ready to go reaching towards the $65 level above. The market pulling back and bouncing from this trend line is probably the best technical signal that we can see, and I think that it’s only a matter of time before we not only reach the $65 level, but then eventually break above it, offering a longer-term trade. Noise continues to be a major factor in this market though, so be careful.
Brent markets pulled back initially during the session as well, but then bounced off the major uptrend line on the hourly chart also, and I think it looks likely that we are going to go towards the $70 level again. That’s an area that offers a significant amount of resistance, but I think given enough time we will not only breakout above there, perhaps go higher than that as well. There is a gap just above the $70 level though, so don’t expect it to get broken immediately. There’s a lot of volatility, but with the US dollar being soft lately, that has helped crude oil as well as other markets also. If we were to break down below the $60 level, that would be catastrophic for the uptrend.
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.