Forex Crude Oil Technical Analysis for June 8, 2016
Forex Crude Oil – The WTI Crude Oil market broke higher during the day on Tuesday, clearing the $50 level at one point. Ultimately, if we can break above the top of the range for the session on Tuesday, it should get the market moving and more of a “buy-and-hold” type of scenario, as the $50 level course has a massive psychological effect on the markets, but now it looks as if we may have to pull back several times in order to build up the necessary momentum to have a longer-term trade. The $48 level below should be supportive, and essentially the “floor” in this market. With that being the case, this is a “buy only” market as the sellers have all but disappeared at this point in time.
Brent markets broke higher on Tuesday, clearing the $51 level. There is a significant amount of noise between here and the $54 level, but sooner or later it looks as if we will break above that level. Pullbacks at this point should be thought of as value and therefore should attract quite a bit of buying pressure. The $40 level below should be the “floor” in this market as well, but quite frankly it would not surprise me at all if the $50 level offers quite a bit of support as well. Keep in mind that the US dollar continues to struggle, so it’s likely that the depreciation of the US dollar is going to continue to propel this market higher.Keep in mind that the US Crude Oil Inventories announcement comes out today, so that of course can have a massive effect on both of these markets, so it could be the catalyst for a significant move. At this point in time though, any type of pullback will more than likely offer value that people will take advantage of. A “knee-jerk reaction” due to the announcement could be reason enough to start buying as the market will probably correct itself given enough time. After all, the longer-term uptrend has been very strong, and at this point in time there’s no reason to think that it is going to change.