The WTI Crude Oil markets have a positive session on Monday, breaking above the $97.50 level for the close. As a matter of fact, we went as high as $98, but stopped abruptly and turned back around as the area showed itself to be far too resistive. With that being said, I believe that this market is going to pull back, but regardless I do not think that you can sell this particular market at this moment.
Ultimately, I believe that this market is going to continue to consolidate, and because of that this will become a short-term traders market for the foreseeable short-term future. This is because we are approaching the end of the year, and therefore liquidity will start to disappear from the marketplace. Think about it: if you were a large firm, would you be one team to put on risky positions this late in the year? Probably not.
Sideways grind, between now and New Year’s Day.
I believe that we will continue to see a bit of a sideways grind between now on the New Year’s Day holiday, if not a little bit later than that. Because of this, there’s really no longer-term position that I’m willing to take, but I do recognize the fact that somewhere near the $95 level, there should be a significant amount of support. Because of that potential support, I believe that buying pullbacks for short-term gains will probably be the best way to go for the next couple of weeks. In other words, I will simply be buying pullbacks for gains that last maybe a day or two at best.
If we did manage to break above the $99 level however, I believe this market would head to the $101 level without too many issues. Alternately, I think that is what’s going to happen, but it would not surprise me at all to see that happen after New Year’s Day, and not before. Getting above $101 seems almost impossible to me at this moment, although that certainly could be accomplished in January if the situation dictates.
