The West Texas Intermediate Crude Oil market initially tried to rally Wednesday but then plunged quite rapidly.As demand for crude oil continues to drop, this is going to be a running narrative in this market.The $90 level underneath will be crucial to pay attention to because it could open up the next wave of selling.
Breaking Below $90
Anything below the $90 level probably allows the market to drop down to the $80 level given enough time. Yes, we are below the 200-day EMA now as well and are threatening to break through a major consolidation area. While we could bounce from here, the reality is that the market has been somewhat relentless in its selling pressure, and it’s probably worth noting that even though OPEC has decided not to increase production, prices continue to fall anyway. This should tell you exactly what traders think about the economic outlook going forward.