The WTI Crude markets fell during the session on Thursday, but found the $96 level supportive as we had anticipated previously. That being the case, there's this market is going to find some support in this general vicinity, and should be noted that the candle for the Thursday session is in fact a hammer, one of my favorite bullish scenarios. We are sitting right on top of a bunch of support, so quite frankly I can't think of a better place for this to have appeared.
Going forward, I feel that this market will more than likely try to get to the $100 level again, if we can break above the top of the hammer for the session on Thursday. That is the classical definition of a break higher from the hammer, and that should have plenty of technical traders getting involved in the market as it starts to move higher.
A weaker US dollar should propel this market over time.
With the Federal Reserve painted into a corner as far as tapering off of quantitative easing is concerned, I feel that this market will eventually catch a little bit of a bid. Perhaps we have had issues with demand concerned recently because of the poor employment numbers, but eventually the value of the currency don't get in the way of a falling market. Markets like this can act in a very schizophrenic manner, focusing on one thing, and then turn around and focusing on the other a couple of weeks later. I believe that's what is about to happen in this market, and going forward we should see quite a bit of strength.
It isn't until we get above the $102 level low that I feel this market becomes more of a long-term buy-and-hold scenario. It's hard to tell that's going to happen, but I certainly can see where we could have a nice bounce over the next couple of sessions, if not weeks. With that being said, I do not sell this market simply because there is so much noise below.