- Crude oil markets experienced a notable rally during Thursday's trading session, hinting at a potential breakout. Both WTI Crude Oil and Brent displayed bullish momentum, with WTI approaching the $80 level and Brent edging close to $83.50.
- Technical indicators, such as the 200-Day Exponential Moving Average (EMA), point to an uptrend, attracting traders to buy into the market.
- Additionally, a massive bullish flag formation has taken shape, providing further encouragement for technical traders to join the rally. This article delves into the current situation in both WTI and Brent markets, as well as potential outlooks and trading opportunities.
Top Forex Brokers
The West Texas Intermediate Crude Oil market exhibited a strong rally during Thursday's session, making strides towards breaking above the $80 level. Should this breakthrough occur, it may lead to a further advance toward the $82.50 level. Notably, the presence of the 200-Day EMA above the current price supports the argument for an ongoing uptrend. Traders may see pullbacks as potential buying opportunities, particularly around the 200-Day EMA, making it an important indicator to monitor.
Furthermore, the market has recently formed a massive bullish flag pattern, enticing many technical traders to enter long positions. Based on this pattern, there is a possibility of WTI reaching as high as $87, which could materialize if the bullish momentum continues to unfold.
Similar to WTI, the Brent markets also witnessed a rally, approaching the $83.50 level. Although Brent is currently trading just above the 200-Day EMA, suggesting a slightly less bullish outlook, overall sentiment remains positive. The idea of Brent serving as a "makeup trade," catching up with the WTI market, is plausible, further reinforcing the buying opportunities presented by short-term pullbacks.
Keep a Close Eye on the 50-Day EMA
With both WTI and Brent displaying bullish characteristics, traders should exercise caution when considering short positions. At present, the buyers seem more focused on the impact of OPEC production cuts, which may continue to support the market's positive sentiment. However, it is crucial to keep a close eye on the 50-Day EMA, as a breakdown below this level could prompt further selling.
Considering the potential for a substantial move upward, traders are encouraged to exercise patience and look for value in this clearly bullish market. In the case of Brent, the recently broken bullish flag pattern could indicate a potential advance to the $92 level.
Crude oil markets witnessed a robust rally during Thursday's trading, indicating the possibility of an imminent breakout. Both WTI and Brent displayed bullish momentum, with WTI nearing the $80 level and Brent approaching $83.50. The presence of the 200-Day EMA supports the notion of an uptrend, attracting traders to buy into the market. Furthermore, the formation of a massive bullish flag pattern has spurred technical traders to enter long positions.
Ready to trade WTI Crude Oil FX? We’ve shortlisted the best Forex Oil trading brokers in the industry for you.