The WTI Crude Oil markets rose during the session on Friday, as the nonfarm payroll numbers come out just a little bit better than anticipated. With this in mind, it suggests that perhaps there could be a bit more demand for crude oil going forward, especially in the North American region as the employment situation seems to be picking up a bit. Going forward, I would fully anticipate this market to head towards the $110 level, but it might be a while.
All things being equal, I believe that this move above the top of the hammer is the beginning of a move even higher, but I do recognize that there is a bit of noise in this general vicinity. Because of that, expect volatility, but ultimately I do think that we will eventually see the buyers win out.
Pullbacks might be the key here.
Because of this, I think that as pullbacks appear there should be plenty of buying opportunities going higher. This market will certainly have a lot of noise between here and $105, but at the end of the day I believe that the fact the market pulled back and formed a hammer, only to bust out to the upside again. This shows that there is a real resilience to the marketplace now, and because of this I believe that every time we fall there should be plenty of people underneath willing to buy.
As long as there are decent economic numbers coming out of the European Union, as well as the North American countries, I believe that the crude oil markets will continue to go higher. Anytime this market pulls back I will be looking for some type of short-term bullish candle in order to start buying again, albeit in small pieces. I believe that the noise will make it difficult to take on large positions all in one shot, but at the end of the day I do think that if you are patient with the market, and the volatility that will cause issues, this market could end up being very profitable over the longer term.
