The $104 level is where it sits right now, and I do think that we are running much lower. Any sign of exhaustion will more likely than not be jumped on, especially as there are concerns about the global economy, as a slowdown will almost certainly drive down the value of crude oil because demand will fall.is nice, and it does suggest that we have a little further to go. However, it’s where we close at the end of the day on Friday that will tell us more of the story.
Even if we do rally from here, it’s really not until we break above the 50 Day EMA that you can start talking about the positivity of the market , because, for the most part, we are still in a very negative trend and channel. The US dollar strengthening of course will work against the value of crude oil as well most of the time, so you can pay close attention to that correlation also.storage numbers during the day came out higher than anticipated, suggesting that perhaps demand for energy is dropping.
I think it’s probably only a matter of time before the short-sellers come back. I will be looking for signs of exhaustion to jump on.