Trying to break the top of the triangle
It is very likely that we will continue to see buyers on these declines so it is difficult to deprive ourselves of this market.
The West Texas mid-market crude oil market initially fell quite hard during the trading session, but rallied to show signs of strength as the $ 64 level offered significant support. That being said, the market will likely continue to try to push higher and take off. If we can get past the top of recent highs then we might look to the $ 70 level. The $ 68 level was that higher peak so I think it’s only a matter of time before going higher than that, maybe even as high as the $ 75 level.
It should be noted that the 50 day EMA climbs the uptrend line into the ascending triangle, so I think ultimately it’s likely we’ll see this offer dynamic support. Either way, I have no interest in shorting this market, but if we fall below the 50-day EMA, chances are we could move towards the $ 57.50 level. In general, I think it’s only a matter of time before the market finds buyers, but a break below the 50-day EMA could certainly push this market down in the near term.
It is very likely that we will continue to see buyers on these declines so it is difficult to deprive ourselves of this market. This is all the more true as we ended up forming a bit of a hammer, which also has a bullish tone. Nonetheless, most people trade this market on the basis of the idea of additional demand kicking in, especially as economies around the world begin to reopen and therefore demand more crude oil. Beyond that, the market has also been shown to be very resilient, so I think we’ll continue to find one reason or another to go higher, especially if the US dollar collapses, as the simple equation of inflation could kick in and send that out. higher market. Commodities are all on the same path, and it’s on the rise. I have no interest in trying to sell this market until we go below the 50 day EMA, which doesn’t look very likely.