The WTI Crude Oil markets rose during the session on Thursday, bouncing off of the support area that we see at the $101 region that has been so supportive lately. This is simply a continuation of the supportive area that we've seen for a couple of weeks now, and as a result I think that this market will continue to grind in a somewhat sideways manner.
That being said, I feel that this market is ready to continue the consolidation that we've seen for some time now, and as long as we remain above the $100 level, I see absolutely no reason to short this market. However, if we did get below that area, I would be very bearish of the WTI Crude Oil markets, as it would be a breach of significant support and the breach of a large round psychologically significant number.
Janet Yellen could be bullish for oil.
Janet Yellen being named the next Chairperson of the Federal Reserve will certainly be negative for the US dollar, and as a result it would not surprise me at all to see this market bounce over the next several sessions, and grinding higher. However, I do think we need to get above the $104 level, because that area is somewhat resistive, and as a result we need to see a daily close above that before we see the next leg higher.
That being said, if we get above the $104 level, I think that we had towards the $108 level with relatively little issues. That being the case, I think that this market is a "buy only" market, and as a result I think that the market will bring him quite a few buyers in this general vicinity, mainly because of the fact that the area has been so supportive over the last two weeks. If that's the case, then there's a good chance of their time this market falls, short term charts could be used in order to find supportive candles on the small time frames in order to take advantage of which should be a nice move higher.