WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen quite sharply in the trading session on Tuesday and has approached the 50 day exponential moving average, although I now think it should find support high. In fact, I think a possible rebound from this region would be a classic pattern of correction towards support and recovery, however there are many geopolitical factors that influence prices and it is also true that demand is concerned due to the slowdown in the world economy.
Now if we do get back to $100 then I will buy the WTI market, while a break below the 50 day moving average on a daily close I think we can quickly send us back towards $85.
Video analysis of the price of crude oil 03/16/22
Brent Crude Oil
Brent has basically done the same thing and has fallen sharply towards the 50 day exponential moving average, breaking through the psychologically important $100 level in the process. In that scenario I think that Brent should try to maintain the line it has drawn in the recent rises or else it could sink. With this, however, I am saying that something like this is going to happen, but it is clear that in recent days the price has suffered significant damage.
Break above the $100 series the first step towards recovery, followed by a break above the highs recorded in the session on Tuesday. Should we do something like that I think the long-term uptrend will continue and the price of crude oil will continue to rise. Finally, I would like to point out that the OVX, the oil volatility index, is at extremely high levels and thus suggests that trading in this market will be more complicated.
This article was originally published on FX Empire