Crude Oil Price - Feb. 15, 2013

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By: DailyForex.com

The WTI Crude markets did very little during the session on Thursday intensively stained below the $98.00 level that has been so resistive. I look at this area as the gateway to the $100.00 level, and getting above there would be very bullish sign. However, I fail to see how the $100.00 level be overcome with any great amount of ease.

Looking at the chart, it's obvious that we have been consolidating between the $95 level and the $98 level. I don't see any reason to think that we will break down, as the Federal Reserve continues to print Dollars and the markets continue to try and protect wealth by bidding up commodities. The oil markets also have the added benefit of appreciating due to the fact that the global economic numbers are getting a little bit better in various countries.

Oil 21513

Also, you have the think that there are concerns in the Middle East as usual, and this of course is a strong bullish fundamental issue for crude oil in general. Because of this, I believe that there will be a bit underneath this market for the foreseeable future. I have a hard time believing that $95 gets broken to the downside, and even if it does I believe that $92 should offer quite a bit of support as well. So in a sense, I almost feel like there's a floor in the oil markets right now.

Taking a rest

When I look at this chart, it makes sense that this market is taking a rest at the moment. After all, it really wasn't that long ago that we were down at the $86.00 level. This entire move has been done within two months, and when you look at the angle of appreciation in this market, it makes sense that the buyers might need to take a bit of a breather at this point. In order to go higher, we are going to need more people to step into the marketplace and bid the cost of WTI crude higher. Until we get that, sideways could be the most common action in this market, making a perfect scalpers market between $95 and $98.

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.