The West Texas Intermediate Crude Oil market has gone forwards and backwards fairly drastically through the buying and selling session, primarily based mostly upon the newest rumors popping out of the OPEC assembly. Because the day has passed by, there have been numerous “official sources” reporting various things so far as whether or not or not the manufacturing cuts shall be prolonged, and this in fact has precipitated lots of back-and-forth buying and selling. On the finish of the day although, we’re merely in an space of consolidation whereas we attempt to determine the place to go subsequent.
It’s price noting that the 50 day EMA beneath has provided a major assist degree over the past couple of days, so with that being the case it’s possible that we’ll proceed to see it supply a possible bounce off of short-term charts. That being stated, the market additionally has assist just under there on the $57.35 degree. If we have been to interrupt down beneath there, the market is prone to go searching in direction of the $52.50 degree, and due to this I suppose we are going to proceed to see merchants pile into the commerce if we do the truth is break down. This may greater than possible be on account of enhance manufacturing.
Alternatively, there appears to be a major quantity of resistance close to the $62 degree, so if we have been to interrupt above there then we are going to retest the earlier uptrend line, after which maybe go searching in direction of the $65 degree subsequent. This can be a market that’s merely ready for the following catalyst, which may come at roughly any time and naturally will probably be till we get the precise official announcement that OPEC has determined what to do subsequent.
That being stated, we now have damaged by a significant uptrend line and we’re sitting with a flat 50 day EMA. All issues being equal, it is a market that I believe will make an even bigger transfer quickly, however remember that it’s Good Friday so there shall be a majority of merchants away from the desk through the day, in order that being stated, I believe it is a market that’s merely going to do nothing till we get a little bit of certainty. At this level, it is a scenario the place it’s a matter of sitting and ready to let the market let you know what to do.
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