Crude Oil Markets Pierce the Trendline

Technical Analysis of WTI Crude Oil

To demonstrate how erratic the market will be, the West Texas Intermediate Crude Oil market broke through a significant trendline on Wednesday during trade. Since everyone is currently focused on the likelihood of a recession, the $100 level will most likely serve as the next significant support level.

Although we haven't formally changed trends yet, $100 is significant from both a structural and psychological perspective. Because of this, you must be informed and play the market appropriately. Although a bounce has caused a lot of harm, it does make some logic.

Technical Analysis of Brent Crude Oil

Additionally, throughout the trading session, the Brent markets declined and fell under the $110 barrier. But now, buyers have returned, driving this market higher once again. You need to pay great attention to what happens with the downtrend line beneath because it will continue to be crucial. In the end, I believe that this market will remain quite loud even though it is still officially rising.

I am worried about the general rise, not that we break down below the $100 level on one of these two oil markets, and it should be highlighted that most of this is based on recessionary worries, despite the fact that the key indications in China are rather good. In other words, if you allow it enough time to develop, this will probably turn out to be a purchasing opportunity. As usual, position sizing will be important.