Crude oil markets have gone back and forth on Friday to limp into the weekend with a bit of a lack of momentum.
The West Texas Intermediate Crude Oil market has gone back and forth during trading on Friday, as we are limping into the weekend. We don’t necessarily have any real directionality over the last couple of days, as we have pulled back from the 200 Day EMA. Ultimately, I think this is a market that will be respecting the $90 level in the short-term, but whether or not it holds is something that remains to be seen. If we were to break down below the $90 level, it could open up a move down to the $85 level rather quickly.
However, if we turn around a break above the heights of the last couple of days, then we might take out the 50 Day EMA, opening up a move to the $100 level. At this point, I think we are looking at more or less a choppy sideways market.
Brent markets initially tried to rally during the session, but goodbye games to sit on the 200 Day EMA. The Brent markets are limping into the weekend just like the WTI markets are, showing just how unknown the future is. Ultimately, this is a market that is continuing to draft much lower, but I don’t necessarily think that we are going to get a big break down either. Over the longer term, I would anticipate that we are going to try to find some type of range in this general vicinity, especially as a 50 Day EMA is racing toward that 200 Day EMA. With all that being said, this is a market that I have no interest in trading until we can get some type of impulsive candlestick.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.