The WTI Crude Oil markets did very little during the session on Friday, essentially showing how confused the markets are at the moment simply because the nonfarm payroll numbers came out stronger than anticipated. When they came out it had people thinking that perhaps the Federal Reserve would taper off of quantitative easing, driving up the value of the US dollar, as bond yields would rise over time. However, on the other side of that coin you can save that the employment numbers rising during the previous month could drive up demand for petroleum, and that is very bullish for the WTI market
Because of this, the markets look to be a bit tight at the moment, and this of course makes sense that the oil markets will bounce around in this general vicinity for the near-term, because the markets need to come up with some type of catalyst to move in one direction or the other.
Could this be accumulation?
Looking at this chart, this is the bottom of a significant fall, and we are near the $95 level. As of course is a large round psychologically significant number, and as a result there are people willing to buy this market. Sometimes, the "smart money" starts to buy when nobody else wants to, and this of course is a significant support level in general, so there is the possibility that longer-term money is starting to flood into the marketplace to take advantage of value at this point.
If we did break down to a fresh new low, this market will more than likely head down to the $90 level. The $90 level is very supportive though, and as a result that area should be difficult to break down below is well. On the other hand, if we managed to close above the highs from the last couple of sessions, I believe this market will head to the $98 level, and then possibly the $100 level. In that general vicinity though, resistive candles will be nice selling opportunities.
