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Crude oil WTI
The West Texas Intermediate Crude Oil market has done next to nothing during the trading session as we continue to dance in the same zone we have been previously. The 200-day EMA sits just above, just like the 50-day EMA sits just below. Ultimately, this is a market that can’t seem to take its direction together, and therefore we just go back and forth. There are concerns about demand, which of course is going to be a problem if we are going to have various economies around the world starting to slow down or even crash. On the other hand, we also have an oversupply problem. The only thing that can make this market go up is the idea of stimulus.
Crude Oil Video 10.20.20
Brent
The Brent market also comes and goes in a very tight range, as the 50-day EMA is currently in the $ 43 area. Ultimately, this is a market that also needs to see some kind of stimulus coming from States. United for the rest of the world to suddenly jump on the idea of increased demand for crude oil. If we break higher, the 200-day EMA located just below the $ 45 level will be a major problem. Signs of depletion will sell out, and that’s why I see the best trade available right now. On the downside, the $ 42 level is some support, and certainly the $ 40 level will be. Basically, we are stuck in some kind of narrow range.
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