Continues to Drift Back and Fort
The range has proven to be consistent, making it attractive to range-bound traders.
During Friday’s trading session, the West Texas Intermediate Crude Oil market experienced some volatility, causing it to dip slightly. It seems that this trend may continue, but it’s important to note that the $72.50 level has provided reliable support in the past, making it difficult to predict whether the market will break below this level. Currently, it appears that the market is directionless, and we may see a lot of back-and-forth movement, with the 50-Day EMA acting as a potential magnet for prices around the $78.16 mark.
- On the other hand, resistance can be found at the $82.50 level, so traders should exercise caution.
- Technical traders will also keep an eye on the 200-Day EMA, which is located just above the current trading range.
- Given the low global demand, the oil market is experiencing conflicting signals, making it unlikely that there will be any significant movement in the near future.
- The Brent market attempted a rally at the start of Friday’s trading session but later retreated, testing the $81 level.
- Like the WTI Crude Oil market, it continues to move within a range and faces the same challenges.
- Uncertainty surrounds whether the global economy will experience a resurgence in demand soon, and the Chinese market’s reopening has been lackluster.
The $77.50 level is expected to provide support, while resistance is anticipated at the $90 level. The 50-Day EMA, like in the WTI market, is situated in the middle of this trading range, indicating that the market is currently directionless. However, the range has proven to be consistent, making it attractive to range-bound traders. Once the market breaks out of these ranges, there could be a rapid $10 move. In the meantime, it’s very likely that we will continue to see a range bound trading system work out, therefore it’s one of those situations where you do it until it proves you wrong. I would not necessarily throw a ton of money into this market, but it could be a nice little addition to your overall trading performance. That being said, understanding that eventually we do break out of these ranges, and it’s just a fact of life that you may get multiple wins in a row, but eventually lose one. A good trading psychology will be key then.
Ready to trade WTI/USD? Here are the best Oil trading brokers to choose from.