WTI Crude Oil
The West Texas Intermediate Crude Oil market has gone back and forth in a very tight range again on Monday, as we continue to see a lot of choppy behavior. Quite frankly, this is a market that does not look like it has anywhere to be, and therefore short-term trading is probably about as good as this gets. Ultimately, I do think that we break higher given enough time, mainly due to the falling US dollar more than anything else. I believe the market will continue to look at the 50 day EMA and the 200 day EMA both underneath as support. If we were to break down below the $40 level though, that could change a lot of things. There is no demand for crude oil, but the US dollar continues to fall.
Crude Oil Video 01.09.20
Brent markets also look very sideways to say the least, as we have shown a proclivity to go nowhere. We are currently trading right around the 200 day EMA, which is of course an area that a lot of people will pay attention to. Underneath there, the 50 day EMA also comes into play as support, so I think somewhere in this general vicinity you will continue to see buyers jump in and pick up value as it occurs. The market continues to be based upon the US dollar falling more than anything else at the moment, so I believe that the “buy on the dips” mentality should continue to be the way we go forward during the next several sessions. I have no interest in selling until we break below the 50 day EMA.