I think at this point in time, the market is likely to continue to see questions asked about the demand, and of course the supply. The war in the Middle East obviously has a major influence as well, so I think you have to look at that as a potential driver. We are oversold at this point, so I think were probably getting close to some type of bounce, perhaps back up to the $80 level. I don’t know whether or not the market will break above there, but that might be the short-term target. If we break down below the $75 level, that would be a sign that the markets are currently focused more on the idea of a recession.
Brent Crude Oil (UK) Technical Analysis
Brent markets also fell during the trading session on Wednesday, trying to find some type of support. That being said, the $80 level course is an area where we would see a lot of importance based on the large, round, psychologically significant figure, and the fact that it is an area where we’ve seen some action previously. If we can break above the top of the candlestick for the trading session on Wednesday, then the market could rally all the way to the $85 level.
I think at this point, the fact that the war in the Middle East has not expanded might have knocked one of the reasons out of the market for higher priced oil. I do think that a recession is a very real possibility, and I think the market is finally starting to see that as well. Nonetheless, expect noise.
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