Forex▼ Bearish
Crude Oil Gaps Higher, Reverses at 200-Day EMA; Weekend Gap Risk
WTI crude gapped higher Monday, touched the 200-day EMA, then reversed. Middle East headlines drive the market, Chris said. Support at $70, resistance at $85. Weekend gap risk.
Continue with
WTI crude oil futures (CL) gapped higher at the open Monday, touched the 200-day exponential moving average, then reversed. The move reflects geopolitical headlines from the Middle East, not supply-demand fundamentals, Chris, a senior analyst at FXEmpire, said.
The 200-day EMA offered resistance, Chris noted. Brent crude also opened with a gap. It pierced the 200-day EMA and reached toward $85 before failing just shy of that level. Chris described the turn as "confused market behavior."
The market is driven by headlines from Tehran and Washington, with the Strait of Hormuz as the focal point. "Traders are more worried about what's going to happen in the Strait of Hormuz than anything else," Chris said. Supply and demand are not the direct driver at the moment.