Brent Technical Analysis
Brent looks very much the same. It’s above the 50-day EMA and, in fact, looks maybe a little bit stronger, which makes a certain amount of sense considering that Brent is generally more of an international grade of oil anyway. The market being just above the 50-day EMA brings the 200-day EMA into sight, but right now, I still think we’re overdone.
I don’t see the proper price action to start shorting, but I certainly don’t want to chase it 8% higher two days later. It’s just bad trade management. So, unless you happen to already be long the market, you’re simply waiting for your opportunity to step on this rally that probably ends pretty quickly. After all, we recently had a war in June, and within two weeks, we had already fallen right back to where we were.
This will either get resolved, or it will get out that the Russians are selling oil to China and India—just like they always have—and we fall right back down. Ultimately, this is a market that I’m looking to short; I just don’t have that signal yet.
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