The West Texas Intermediate Crude Oil market has pulled back significantly during the trading session on Wednesday, heading into the inventory figure. At this point though, it looks as if the market is trying to find some support although the 200 day EMA has caused a bit of an issue. If we can break above the top of the shooting star from the Tuesday session could open the door towards the $60 level. Beyond that, the 50 day EMA underneath should offer support as well, as we have made a decent breakout, and now have retested the previous resistance. One thing is for sure though, there’s a lot of noise just waiting to happen.
Brent markets also initially tried to rally but then fell towards the 50 day EMA. I think that there is a ton of support below the $60 level, and the fact that we have broken above the top of a wedge does suggest that perhaps that value hunters will continue to come back into this market on a drop. If we break below the $60 level, then things get a lot messier but right now I have to assume that the market will hold in that general vicinity. Overall though, this is a market that looks as if it is trying to change the overall trend and reach to the upside. I believe that oil markets will continue to be very choppy and noisy to say the least.
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