Crude oil market did very little on Friday. Let’s have a look at their performance.
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market did very little during the trading session on Friday, as we continue to hover around the 50-Day EMA indicator. This is an indicator that has offered quite a bit of resistance previously, so therefore you can almost think of it as a bit of a downtrend line. Underneath, the $70 level is an area of interest, as we had bounced from that level on Thursday. If we break down below that large, round, psychologically significant figure, then it opens up the possibility of a move down to the $67.50 level. Anything underneath there opens up the possibility of a move down to the $65 level, which is essentially the bottom of the overall consolidation that we have been in.
Brent Crude Oil Technical Analysis
Brent has also tried to take off to the upside during the trading session on Friday, but we are hanging around the 50 day EMA over here as well. If we can break out from there, then it’s likely that we could go looking to the $80 level. The $80 level of course is a large, round, psychologically significant figure, and the top of the overall consolidation area. If we turn around and break down below the $75 level, then it’s possible that we could drop down to the $71.50 level. Anything below there then opens up the possibility of an attempt to test the crucial $70 level, which is a large, round, psychologically significant figure and an area where the bottom of the range seems to be located at. Keep in mind that the crude oil markets are having to deal with the idea of whether or not there is going to be enough demand, despite the fact that OPEC continues to cut down overall production.
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Source: Nasdaq
