Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Crude Oil Markets Take Off
By: Christopher Lewis | December 1, 2022

• Crude oil markets have taken off during the trading session on Thursday, as it looks like we are trying to recover completely.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied early during the day on Thursday to show signs of strength, breaking above the recent short-term resistance. That being said, there are still a lot of things out there that could work against the value of crude oil, not the least of which is a lack of demand. It is perhaps true that we got a little overdone to the downside recently, and it might be part of what you are seeing right now, that the market is trying to recover from that. That being said, the first signs of exhaustion I suspect that oil will run into selling pressure to retest the lows.

Brent Crude Oil Technical Analysis

Brent markets have rallied as well, as they are threatening the $89 level. At this point, the 50-Day EMA is sitting right around the $91.50 level and dropping. Ultimately, I think this is a situation where we are trying to form a little bit of a double bottom, but whether or not it holds is still open for debate. Oil is oversold as of late, and we are recovering in order to show signs of life.

Keep in mind we have the jobs number coming out on Friday, so that will cause even more chaos as far as liquidity and volume is concerned, so expect a lot of chop and noise, but right now I think this is still a market that you have to be suspicious of rallies in. Underneath, if we break down below the hammer from the Monday candlestick, that could open up a floodgate of selling.

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