The WTI Crude Oil markets rose during the session on Wednesday as the bottom of the consolidation area continued to pressure the market to the upside. The move isn’t that very surprising to me, and as a result I bought into this market earlier in the day. This market has been in this range for some time now, and as a result I thought the move made sense.
The nonfarm payroll report comes out on Friday, and as a result this market will be affected by the announcement. The value of the US dollar will be up for grabs as well, as the Federal Reserve will certainly be looking at the employment situation in order to decide about tapering off of quantitative easing. This of course has been the focus of the market over the last several weeks, and because of this I think that the announcement will be massive in its implications when it comes to the commodity markets – with oil being no different of course.
Several hammers in a row.
The market showed several hammers in a row over the last week, and this was the first sign that the buyers were stepping into the market. This shows just how interested they are in the $101 level, and I think this will continue to be the case going forward. In fact, I wouldn’t be surprised to see the area hold in reaction to the announcement on Friday.
The candle for the session on Wednesday shows just how strong the move was during the day. The close of the day was at the top of the range, showing just how likely we are going to see the buying continue. However, I understand that the $104 level could offer a bit of resistance going forward. This shouldn’t be a big issue in the long run, but in the end we should see the top of the consolidation hit yet again. In the meantime, expect a lot of back and forth choppy trading as the markets are still jittery to say the least these days.