December 6, 2022 [FXEmpire] – Crude oil markets have initially fallen during the trading session on Wednesday, but as you can see, we have turned around to show signs of life again.
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has initially fallen during the trading session on Wednesday, plunging even lower. However, we have turned around to show signs of life to bounce a bit and it suggests that perhaps we are going to continue to see a lot of choppy behavior. By bouncing the way we have during the day, we could see a little bit of follow-through. We could even see this market go back to the $80 level, and possibly even higher than that to the 50-Day EMA. Either way, I would be looking for signs of exhaustion that I can take advantage of.
Alternatively, if we turn around and break down below the bottom of the candlestick from Wednesday, then it’s likely that we go down to the $72.50 level, and then possibly even the $70 level.
Brent Crude Oil Technical Analysis
Brent markets have plunged a bit during the trading session on Wednesday, but then turned around to form a bit of a hammer as well. If we can recapture the $80 level, then I think we are going to see a little bit of a recovery that might pick up some momentum. Quite frankly, I’ll be looking for signs of exhaustion that I can short, due to the fact that the demand picture for crude oil is still miserable, but we may have gotten a little bit ahead of ourselves to the downside. Because of this, a relief rally does make a certain amount of sense, but I have no interest in buying crude oil, at least not until the global outlook changes for growth in general.