Wednesday gave a taste of a rally on the West Texas Intermediate Crude Oil market during its trading session, but it wasn’t for long until it gave back quite a bit of the gain, only to continue seeing a lot of noise below the base $55 level.
That is an area that has provided both support and resistance lately, users now will try to change the overall trend, but it will take a lot of effort to break through there and forward. But once the market gets above that level, it would likely continue to go higher, until it takes off to the upside for a larger move.
On Brent markets, there were similar attitudes of what users would expect, the 20 days EMA situated underneath at the $60 level, and the 50 days EMA being sliced through the candlestick for the day.
What traders would be looking for would be to break above the $64 level, which would push the Brent off to the upside, taking advantage to how the markets tend to move in the same direction, then if one of these markets breaks out, the other would be running right behind it.
The possibilities for both markets to form an inverse head and shoulders is normal, so it would be a matter of time before the market reach its expected breakout.
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