Crude oil markets were all over the place during the course of the trading week, as we try to sort out what we are going to do next. All things being equal, this is a situation where I think you have buyers coming back into the market, but not enough conviction to get things moving.
The West Texas Intermediate Crude Oil market has shown itself to be rather noisy, as we have gone back and forth during the course of the week. With this, I think we’ve got a situation where we are going to simply kill time between the 50-Week EMA and the 200-Week EMA indicators. As we head into the end of the year, it’s very likely that traders won’t be wanting to put on big positions, so it’s probably worth noting that the market might struggle for clarity.
Once we break out of these 2 moving averages, then I think we can have a bigger move. If we break down, then the $65 level might be targeted, if we break higher, then we could be looking at $90 given enough time. Either way, it’s somewhat neutral at the moment.
Brent Crude Oil Technical Analysis
Brent is very much in the same situation as we find this market trading between the 200-Week EMA at the 50-Week EMA indicators as well. Ultimately, this is a market that once it breaks out of this range, we probably have some type of squeeze that could really get things moving. Whether or not that actually happens remains to be seen, as we are in the midst of December, which is one of the thinnest times of year for volume. If that’s going to be the case, we may just simply drift sideways for the next couple of weeks. Ultimately, I’ll just let the market tell me where it wants to go next.
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.