• The West Texas Intermediate Crude Oil market exhibited a volatile trading session on Tuesday, initially rallying before reversing and displaying erratic behavior.

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• Traders will closely monitor the $70 level, a significant psychological threshold, for potential support.
• It is expected that some form of support will emerge in due course.
• However, a breakdown below the $70 level could trigger a move towards the $65 level, which also holds psychological importance for market participants.

On the upside, the 50-Day Exponential Moving Average (EMA) hovers just above the $74 level, steadily descending. Market participants view this as a short-term resistance point. If the price manages to surpass this level, there appears to be no major obstacle preventing the market from attempting to reach the 200-Day EMA.

Brent (UK Oil)

• The Brent crude oil market experienced significant downward pressure during Tuesday's trading session, reflecting signs of hesitation.
• The 50-Day EMA looms above as a substantial barrier, with traders likely facing challenges in surpassing it.
• However, if a break above the 50-Day EMA occurs, the market could target the $80 level.
• Surpassing this level would open up the possibility of a move towards the 200-Day EMA, located just below the $85 level.

Conversely, a breakdown below the $74 level for Brent could lead to a decline towards the $70 level. The $70 level has previously demonstrated strong support, making it a crucial area that has been tested multiple times. It carries significant psychological weight for market participants. The question of whether the market will break below this level remains uncertain. However, if such a breakdown were to occur, it could potentially trigger a further substantial decline. Despite this, given the significant decline that the market has already experienced, it is reasonable to view the current situation as part of the typical summer range that often characterizes this market.

In Summary

The WTI Crude Oil market displayed a volatile session on Tuesday, with traders closely observing the $70 level for potential support. A break below this level could pave the way for a move towards $65. On the upside, the 50-Day EMA serves as a short-term resistance level. Similarly, the Brent market faced downward pressure, encountering hesitation near the 50-Day EMA. A break above this level may lead to a rally towards $80, followed by a potential move towards the 200-Day EMA near $85. A breakdown below the $74 level for Brent would signal a possible decline towards $70. Traders should be mindful of the psychological significance and historical importance of these levels. Overall, the current market conditions align with the typical summer range for crude oil.

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