The WTI Crude Oil markets fell hard during the session on Monday, but as you can see found the $97 level to be supportive. We bounce slightly from that level, and as a result I’m not too surprised if this market continues to consolidate in the short-term. The market has been rather choppy lately, but ultimately I think there is a significant amount of demand in this general vicinity, and that support should make itself known relatively soon.
The candle shape of the market on Monday of course is pretty bearish but the end of the day we still look like were going to respect the $97 handle as support, and I would think that that support goes all the way down to the $96 handle. With that in mind, I just am not comfortable selling this market even though we could drift a little bit lower.
Markets continue to digest various headlines out of the Crimea, as well as economic numbers out of China.
I believe that ultimately a lot of the back-and-forth action in this market will continue to be a result of the Russian and Ukrainian situation, as well as the so-so economic numbers out of places like China. I believe that ultimately global demand will pick up, especially considering the fact that the European economic numbers lately been a little bit better, so one would have to think that eventually demand starts to take over again. However, you have to recognize the fact that the global markets are now are a bit on the shaky side anyways and as a result it’s not going to take much to upset the markets.
I will be buying supportive candles in this general vicinity, but I also recognize the fact that it might take a little bit of wherewithal to hang onto the trade. I think in the meantime though, we will probably continue to bounce around between $97 and $100, so more than likely this is going to be more the domain of short-term traders than anything else. A break above $100 does have us chasing the 105 level though.
