The West Texas Intermediate crude oil market has been struggling at the same level for several days now, as we are sitting just below the 200-day EMA. This is definitely a particularly important technical indicator that a lot of people will follow, so it is not a big surprise that we will stop here. Also, it is at the top of the previous interval, so many people will pay attention to that as well. With this happening, I like the idea of pulling back from here and trying to buy. Keeping in mind that I like the idea of continuing to offer 50 day EMA support, and that’s why I’m buying dips because they happened.
The Brent, of course, will follow the same general pattern, and that’s why I like the idea of buying dips in that market as well. The difference between Brent and West Texas Intermediate crude is that the Brent market has not filled the gap, so there is certainly a lot more room to run than the WTI market. But we also have a 200-day EMA. It is possible that this market, meanwhile, plays a bit of a “catch-up,” and that’s why I like the idea of buying this market in the WTI market. The 50-day EMA also appears to enter the gap zone, providing even more support.