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Crude Oil Markets Continue to Grind Lower
By: Christopher Lewis | August 10, 2022

• Crude oil markets have fallen a bit during the trading session on Wednesday and the downtrend continues.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has struggled a bit during the trading session on Wednesday as we continue to see a lot of downward pressure in general. With that being the case, I choose to fade rallies as they come, because quite frankly I think this is a situation where we continue to see a lot of downward pressure. Even though the CPI numbers came out a little cooler than anticipated in the United States, the reality is that economic activity is slowing down. This suggests that we are in fact going to continue to see crude oil underperform. Rallies at this point in time should be selling opportunities, especially near the 200 Day EMA.

Brent Crude Oil Technical Analysis

Brent markets obviously will look the same, as we have to worry about growth in other parts of the world, not just the United States. With that in mind, it does make a certain amount of sense that we would see traders look at this through the prism of demand, and will be keeping an eye on the $90 level underneath, an area that is crucial from a longer-term standpoint. If we break down below there, then it’s likely that this market sells off quite drastically, perhaps opening up the possibility of a move all the way down to the $80 level.

I do not trust rallies at this point, at least not until we break above the 50 Day EMA, which is sitting just above the $103 level. With that, I think we will continue to see more of a “fade the rally” type of attitude in this market, as a slowing economy certainly does not bode well for future outlook of crude oil.

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