The WTI Crude Oil market pulled back just a bit during the trading session today, as we continue to look for some type of directionality. Overall, we are grinding higher, but it is at a snail’s pace.
Because of this, I am looking for an opportunity to buy short-term pullbacks, using the 200 day EMA as an area of potential support. I believe that the market will continue to see a lot of choppy volatility, but it is from a short-term perspective.
In other words, you should be trading this market from a short-term chart. As far as trading longer-term, we could go as high as $49 but at this rate it could take weeks to get there, if not months.
Obviously, the Brent market is behaving very much the same, drifting around the 200 day EMA in order to pick up a bit of support. At this point in time, is very likely that the market continues to drift slightly higher, based upon what is going on with the US dollar.
As the US dollar is very volatile right now, that means that this market will be volatile. Because of this, I think you have to stick to the short-term charts over here as well, and you should also keep in mind that the 50 day EMA underneath should offer a significant amount of support. All things being equal, I like buying short-term dips, but you are not could be looking for big move anytime soon.