The WTI Crude Oil markets fell during the session on Tuesday, but found enough support just below the $100 level to form a hammer for the session again. This is the second hammer in a row, and now I feel fairly confident that the $100 level will continue to offer support in this market, pushing the market higher. I recognize the fact that the market has a bit of resistance above at the $101 level, and that extends to the $104 level, but I feel fairly confident that we are in fact going to break into that area, and perhaps break out above it given enough time.
The Federal Reserve Chairperson Janet Yellen stated during the session that the United States was still on track to continue tapering, and while that should be dollar positive, it also suggests that perhaps the economy in the United States is getting better, which could create more demand for energy, thus pushing this market higher.
Buying on the dips.
I believe that buying on the dips will be the way to go going forward in this market, as it has shown so much strength. That being the case, this market should continue to be positive for the time being, and possibly longer term as well, assuming that economic numbers continue to improve out of the United States. Going forward, I fully expect buyers to take advantage of every dip on the short-term chart, so I don’t necessarily even feel like it’s necessary to wait for daily candles at this point in time, I believe that the move higher is most certainly on.
I ultimately believe that this market is going to try to get to the $110 level, based upon the fact that we saw that area as a major high previously. On top of that, the market continues to show signs of bullishness as we’re getting ready to break out of a “W pattern”, which of course is a very bullish signal, as it is a major bottoming pattern. With that, I see no opportunities to sell this market now.