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Crude Oil Markets Continue to Grind Higher
By: Christopher Lewis | November 30, 2022

• Crude oil markets have rallied again during the trading session on Wednesday, as they continue to recover from the massive plunge on Monday.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied again during the trading session on Wednesday, as we continue to recover from the massive plunge on Monday. The $76 level now looks to be somewhat important, perhaps extending down to the $75 level. It’s a little early to be calling for a “double bottom” in this market, because quite frankly there are a lot of concerns when it comes to global demand, as we are almost certainly heading into some type of huge recession. At this point, I think it probably is easier to fade signs of exhaustion than it is to try to write any rally to the upside.

Brent Crude Oil Technical Analysis

Brent markets also have rallied to break above the $86 level, and now it looks like we are threatening some type of move towards the $87.50 level. Nonetheless, this is also a market that has to worry about demand, so I think it’s going to be difficult to get overly aggressive, and I do think that it’s probably only a matter time before we see signs of exhaustion going forward. The 50-Day EMA is all the way up to the $91.64 level and is dropping.

In other words, we could rally quite a bit and still not change the overall outlook. If we break down below the hammer from the Monday session in either one of these grades of crude oil, that would be extraordinarily bearish and could send the crude oil markets plunging in that scenario. Keep up your money management in this environment, because we are about to make rather choppy and noisy moves.

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