Crude Oil Rallies Again On Thursday

The day on Thursday saw another rally in the crude oil markets as traders continued to observe some signs of recovery following a sharp selloff.

The price of oil has increased somewhat during Thursday’s trading session to show rebound signs, breaching beyond the $70 threshold. At that point, it appears as though the market is simply recovering from an oversold bear market scenario, but it could only a matter of time before traders start to show signs of tiredness and oil prices continue to fall sharply. WTI crude oil is trading at $69.96 per barrel at the time of writing while Brent benchmark is trading at $75.012.

The $75 level, where the 50-Day EMA is located, may continue to be a point of structural and psychological resistance. After all, traders had been consolidated between an upper limit of $80 and a lower limit of $72.50. Since the global economy is obviously vital to global growth and people are concerned that it may be slowing down, the market has generally taken a pessimistic stance.

As traders continued to note a recovery in the Brent market, it also rose during the trading session on Thursday. The market’s hard floor was near the $70 level, but traders are approaching the prior consolidation zone and should notice some market memory around $77.50, which is the range’s low point.

The market reaching towards that area could find some type of barrier, and therefore as soon as traders form some type of exhaustion candle, it’s likely that traders would see sellers jumping into the market.

In order to buy, traders would need to at the very least surpass the 50-Day EMA, which is now located above at $81.55. Although it doesn’t appear very plausible, traders must see the recovery as something that might have legs and could go much further if oil breaks above. Whatever the case, it will be a very raucous market, as oil usually is. The longer-term trend can be joined by traders if they can wait for some sort of exhaustion candle, but it’s also important to note that the $70 level below is a crucial key on longer-term charts. Remember that the US dollar’s worth could also affect the market; if it increases, this normally works against commodities.