The WTI Crude market initially fell during the session on Monday, as the markets were rocked by the situation in Cypriot banking. As the day unfolded, it became more and more apparent that it wasn't Armageddon, and as a result risk assets were bought back up. In fact, this particular market not only found support at the $92.00 level, but it actually managed to close just a bit higher than the Friday session.
We are above the $94.00 level now, so I do believe that we will continue on to the $96.00 level, which is where I see the next serious amount of resistance. This area is fairly "squishy", all the way up to the $98.00 level, so I think that we could even go as high as the top of that area. Nonetheless, it would be a rather messy part of the trade though, but I certainly think the upside is without a doubt more of a risk than the downside.
You have to continue once the US dollar in general, if you wish to trade this market. However, the dynamic isn't quite as strong as it used to be because of the fact that demand for oil will also pick up when the economy is doing fairly well. The US economy is a necessarily coming along, but it isn't exactly stumbling either. As a result, it is one of the strongest in the neighborhood and people choose to invest in it as a result.
The shape of the hammer is rather impressive, and I now think that the gap that started at $92.00 also offers support as well, and because of this I think that it is the "floor" in the market at the moment. I would be interested in buying this market every time it dips over the next couple of sessions, and believe that the shorter-term charts will be the way to trade it. I also think that the US dollar while normally working against the value of this market may not be as destructive going forward. After all, this is more of an American energy story than a European one.