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Christopher Lewis
Crude Oil WTI Brent

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially fell during the week but found enough support at the $35 level to turn things around and start rallying yet again. Quite frankly, this is a market that looks likely to go and fill the gap above at the $41 level. Whether we can break above there are not is a completely different story, and I suspect that the resistance there will probably absorb a lot of the momentum. If we do break above the 50 week EMA, that opens up the possibility of a move to $49, but until something changes quite drastically, I do not think we are going to be able to do that very easily.

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WTI Oil Video 22.06.20

Brent

As you would expect, Brent markets find themselves in the same scenario but have a little further to go in order to fill the gap. If I were going to place a trade in one of these markets to the upside, it would certainly be Brent over the WTI market, not that I have any fundamental reason to prefer one over the other, just that we have more room to run. The $40 level is somewhat psychologically supportive, but I think the real support is closer to the $37.50 level. Once we get to the $45 level it is likely that we will see quite a bit of resistance, just as we will at the $41 level in the WTI market. Gap gets filled, and I think that is about what we are ready to see in the next week or two.

For a look at all of today’s economic events, check out our economic calendar.

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