WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market experienced a bear market rally but is now showing signs of hesitation, indicating that the overall downtrend is still intact. While a significant drop is not expected, a return to previous levels is possible due to concerns about global economic conditions and potential demand destruction. The 50-Day Exponential Moving Average (EMA) could act as a resistance near the $76 level, and even if surpassed, the 200-Day EMA near the $80 level could present another barrier. Overall, there is a higher likelihood of a selloff compared to recent days.
Brent Crude Oil Technical Analysis
The Brent markets have shown signs of recovery but have slowed down after extreme sessions. There is a possibility of exhaustion leading to a market downturn. Volatility is expected to persist, and retesting of previous lows is anticipated over time. Breaking above the 50-Day Exponential Moving Average (EMA) could potentially lead to the 200-Day EMA acting as resistance around the $86 level. The market is likely attempting to establish its summer range, with $70 as significant support and around $86 as potential resistance. Overall, the market is expected to exhibit noisy behaviour, but a downward trend is more likely than an upward trend.
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Source: Nasdaq
