The WTI Crude Oil markets fell during the course of the session on Monday, testing the $103 region. This area should be rather supportive though, as the market has been very bullish for some time. That being said, the pullback has been rather distinctive, as well as impressive. I would anticipate that somewhere between here and the $101.50 level we should see buyers step back into the marketplace, and with that I am on the sidelines waiting for the buy signal.
With that being the case, I feel that the market should give me the single I’m looking for fairly soon. The market broke out after all, and that being the case I have a hard time feeling that all of a sudden this market should selloff. There should be a break higher as soon as we get the supportive candle and at that point time I would be looking for the $107.50 level to be targeted next as it is the recent high that we had seen.
$110? Or $97?
Of course you have to keep both potential moves in mind anytime you look at the market. Although I believe that eventually we get above the $107.50 level, and then head to the $110 level, there is the possibility that the market does in fact breakdown. If it happens, I believe that the market would head to the $97 level given enough time. However, the market has plenty of noise between the $101.50 level and current pricing, so it is difficult to start thinking about selling at this moment in time.
The move higher will probably struggle as well, as there is a significant amount of noise right around the $105 level also. After all, it makes sense as it is a large, round, psychologically significant number, and therefore the clustering in that general vicinity would not be out of normalcy. The question then remains whether or not we can keep the uptrend in play, but I still feel fairly confident that buyers will sooner or later get involved. At this point in time, I am going to be very hesitant to get involved until I get a clear signal, something that the market simply does not have at the moment.
