The West Texas Intermediate Crude Oil market has broken out of a falling wedge on Tuesday to show signs of life again. By doing so, the market looks very likely to continue rallying, especially considering that we are closing at the very top of the candlestick. However, the real question at this point is whether or not this has any chance of taking off to the upside for an extended move.
Pay attention to global demand
There are some things to pay attention to at the moment that has nothing to do with the charts. The first thing of course is whether or not there is going to be global demand. If the global economy is in fact slowing down, it’s difficult to imagine a scenario where demand for oil is going to pick up. After all, oil is the lifeblood of an economy, and as a result, a slowing economy will demand a lot less of it.