The WTI Crude Oil markets fell initially during the session on Wednesday, but as the Federal Reserve Chairman Mr. Bernanke testified in front of Congress that the Federal Reserve remain flexible with quantitative easing plans, this of course will work against the value of the Dollar, and as a result the oil markets got a bit of a boost during the session.
The shape of the candle is a hammer, so this does suggest that perhaps we will see some bullishness going forward. I quite frankly don't like this market right now simple because it has been so parabolic lately, but the fact is that you certainly can't sell it at this point in time. However, if we did managed get below the $104 level, I think that that would be a very weak sign going forward, probably will seethe market fall to the $99.00 handle.
It's all about the US dollar
As far as I can tell, oil isn't exactly in great demand. At least not more than any other time. This seems to be more related to the US dollar, and what's going on at the Federal Reserve than anything else at the moment. It appears that we are consolidating in this general vicinity, and that would be needed in order to continue higher at this rate.
Again, I am not a big fan of buying up at these high prices, but the fact is that you certainly can't sell. That being said, it is summertime, and a lot of times the liquidity just isn't there. With that being the case, the moves tend to be a bit exaggerated in general, and because of that they can't necessarily be trusted either. With all that being said, I think that the real move will come once the summer is done, but in the meantime obviously the market will be very headline driven. I personally am not in this marketplace, and really have no interest in being so to be honest. With the volatility that we have seen and the parabolic nature of the move, I think that it would take very little to freak all of the "weak hands" out of the market, making for a plunge in price.