The West Texas Intermediate (WTI) Crude Oil market broke higher during the trading session, showing signs of strength as word got out that armed militants had attacked Libya’s National Oil Corporation headquarters in Tripoli.
However, guards repelled the attack and therefore it looks as if we are going to focus on demand yet again. With that being the case, I think it is a little bit of a rush to start thinking that demand is suddenly going to spike. Yes, there are vaccines coming next year but we are at a major resistance barrier in the form of $43.
We simply must wait for a daily candlestick to make the next trading decision as we are at a major inflection point. Brent markets of course look very much the same as we have slammed into major resistance. At this point in time, it is very likely that we are going to continue to see a lot of noise right around the $47 level, where we had sold from previously.
At this juncture I would anticipate that there should be a lot of opportunity to fade this move, assuming that it does in fact turn around. I would wait for another daily close to get involved though, and it is also worth noting that it is a shortened week as Thanksgiving holiday festivities in the United States will bring down a lot of the volume.
With that in mind, it will be interesting to see how this closes over the next 24 hours and I think that a little bit of caution is warranted as we should get a pretty strong signal in one direction or the other within the next twenty four hours.