Crude Oil Market Finally Trying to Fill a Gap, states a Fxempire news source.
Crude oil markets have started to fall again
The crude oil markets have started to fall again during the trading session on Thursday, as it looks like we are trying to finally fill the gap.
WTI Crude Oil (US) Technical Analysis
The West Texas Intermediate Crude Oil market fell a bit during the trading session on Thursday, as we are testing the 50-Day EMA almost immediately. There is a huge gap that has yet to be filled, so a lot of traders will be looking to the downside in this scenario. I’ve been talking about this for a couple of weeks, the fact that OPEC cutting production is not necessarily a bullish sign. True, it takes some supply out of the market, but the reality is that OPEC sees some reason to protect price. The reason of course is going to be the fact that the global economy is slowing down and demand is going to fall through the floor.
The question now is whether or not the gap gets filled and bounces, or if the market slices through it. If the market slices through the $75.50 level, then it is likely that the market could continue to go much lower, as it would be a very negative turn of events.
Brent Crude Oil (UK) Technical Analysis
Brent markets have sliced through the 50-Day EMA, in a very negative turn of events. At this point, the market is likely to get looking toward the $80 level, which of course is a large, round, psychologically significant figure, and where the gap started in the first place. Again, if that gap holds and offers support, then it might be a nice buying opportunity. However, it looks as if the market is still going to have to try to figure out all of the questions when it comes to whether or not the global economy is going to slow down or not. If there is a serious lack of energy, then obviously the oil markets will be front and center as to where we trade next. Ultimately, this is a situation where I think you are either short at this point, or you are waiting to see what happens at the $80 level, as it is going to be so crucial. Keep in mind that Friday of course will have people booking gains in one direction or the other, as a lot of shorter-term traders do not want to hold over the weekend.
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Source: Fxempire
