Unless we somehow avoid a global recession, or get some kind of major upheaval due to Russian sanctions, it’s almost impossible to imagine oil taking off outward. as he had done before.
The West Texas Intermediate crude oil market rebounded slightly in Thursday’s trading session, gaining more than 2%. In doing so, it looks like the market is trying to get back to the $85 level, which is an area where we would see some “market memory” kick in as it did during the previous support.
Oil prices offer great trading opportunities
At this point, I’m looking for signs of burnout that I can take advantage of, as there has been a major breakdown. Ultimately, you should also pay close attention to the breakout of the 50-day EMA below the 200-day EMA, kicking off the so-called “death cross”. This is a longer term signal that many people will pay attention to in the longer term, and it is more likely than not a situation where you are losing signs of exhaustion.
Alternatively, if we were to break below the 48-hour low, the market is likely to drop to the $80 level. The $80 level is of course a large, round and psychologically significant number, and an area where we should see a lot of noise. Even if we rally from here, I believe that eventually we will arrive in this region.
- On a rally above the $85 level, there is a possibility that we could go for the $90 level, which is where the market has been falling for the past few days. After that, we could then look at the 50-day EMA, maybe even the 200-day EMA.
- Only when we get through all of this would I become bullish on oil, but right now I think all we are seeing is a rebound from an oversold situation.
- This happens from time to time, and if we continue to worry about the idea of demand, it will most likely be a nice selling opportunity.
Unless we somehow avoid a global recession, or get some kind of major upheaval due to Russian sanctions, it’s almost impossible to imagine oil taking off outward. as he had done before. Ultimately, it’s the market that continues to be volatile, so make sure you keep your position size reasonable and that type of environment.
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