The WTI Crude Oil markets had another positive session on Thursday, poking up above the $97 level. This market looks like it’s ready to continue going higher, and as a result I feel that the market will continue to go higher over the longer term as well. In fact, I believe that this market is heading to the $100 level in the short-term, and as a result the market will more than likely find buyers every time that it pulls back, and going forward buyers should continue to find reason to enter this market as he tried to catch up to the massive change in momentum in this market.
The market should continue higher based upon the fact that the US dollar got an absolute walloping during the session on Thursday, which of course helps the value of commodities in general. On top of that, the energy sector in general is going well also, and going forward the market should continue to pick up momentum as it typically snowballs in this type of situation.
Watch the Federal Reserve and jobs numbers.
If the jobs numbers in America pick up, that could be a sign that the US economy is picking up and therefore demand for oil. The demand for oil will pick up with signs of an improving economic situation as seen in manufacturing. However, at the same time at the US dollar loses strength, it’s likely that the oil markets will go up then as well. European economic numbers look good during the day, and as a result demand could be coming out of the European Union as well. Either way, it looks like oil will more than likely find strength going forward in one situation or the other.
Even if we pullback from here, I suspect that the $95 level should be supportive. If this Area produces a supportive candle, I would be interested in going long there as well. Initially, I believe that the $100 level will offer resistance, but quite frankly I would not be surprised to see this market go higher than that.
