Underneath, the $75 level could offer a significant amount of support, and therefore it’s likely that we could see a situation where value hunters can come back somewhere above there as the area has been crucial. It’s also worth noting that a lot of what we have seen has been concerns that the oil markets are dealing with, not the least of which would be the potential of a major worldwide recession. On the other hand, we also have to pay close attention to OPEC and what it’s going to do with production.
Brent Crude Oil Technical Analysis
Brent markets also have rallied rather significantly during the trading session, using the $80 level as support. All things being equal, it looks like the market is going to continue to see a lot of volatility, based on not only a potential recession issue, but also the possibility that the Middle East war could continue to cause some issues. While we have not seen an expansion of the war, that was one of the big fears initially.
The $80 level should be significant support, and if we were to break down below there, it could change things and drop the market down to the $77.50 level. Ultimately, the 200-Day EMA sits just below the $85 level, and it could be a short-term target but I also recognize that we are a bit overextended at the moment, and therefore it’s likely that we see a little bit of a pullback, but that could be a nice buying opportunity if we continue to see a lot of value hunting in this general vicinity.
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