The WTI Crude Oil market initially tried to recover during Friday’s trading session, but then turned around to form a kind of shooting star. I find it very interesting that the shooting star is forming right at the level of 55 dollars, an area that will attract a lot of attention due to the psychological importance of this round figure. Beyond that, we had withdrawn from the 50-day EMA, which shows even more negativity.
When you looked at the weekly charts, we had formed a hammer from the previous week, and now we are forming a bit of a shooting star for this one. This tells me that the market will continue to fight and, in addition, when you look at the Brent market, you can see that the Brent market looks even worse. With this, and with the fact that these markets tend to move in the same direction, I think there will be a small impact here.
Short-term rebounds will be sold, and I believe that the 50-day EMA will continue to be a massive resistance. If we can break over there, then obviously it is a good sign, but I don’t think that is so, since the highs continue to drop at the same time. In fact, we are in a downward trend, but that does not mean that we will get an occasional pop. In the longer term, I anticipate that this market will fall to the level of $ 52.50, possibly even to the level of $ 50 after that. Crude oil is in serious trouble, not only because of the strengthening of the US dollar, but also because of the slowdown in world growth and, therefore, by extension, because of the slowdown in world demand.. At this time, I am personally not interested in going long term for this asset.