Enter your emailThe crude oil market is a little overextended at this point, so I would anticipate some type of pullback.rallied significantly during the day on Friday, breaking above the $92 level and touching the 200-Day EMA.OPEC has decided to cut supplyThat obviously puts upward pressure on the price of crude oil, so I think at this point in time we will have to pay close attention.
One thing is for sure, the market is a little overextended at this point, so I would anticipate some type of. The question at that point in time would be whether or not the pullback is something that people will be willing to step in and buy. The size of the candlestick for the Friday session should give you a bit of a heads up as to a little bit of follow-through, but I think at this point in time the most important indicator that I see on the chart will bePullbacks to that area should see a significant amount of support. If they do not, then I think oil is in trouble and we continue to drop from there.
The market breaking back down could be a result of concern about demand destruction, so I think at this point in time we will see more of a push-and-pull type of situation between OPEC and whether or not there will be enough demand out there in a slowing global economy.was a little bit hotter than anticipated, so perhaps that’s part of what we are seeing here as well, the idea that enough people are working in the United States to continue to drive the value of oil higher.
At this point, I think the only thing you can probably count on is a lot of volatility, so you may want to pay close attention to the OVX, which is the oil volatility index.