Crude Oil Price- Feb. 26, 2014

Christopher Lewis

The WTI Crude Oil markets fell during the session on Tuesday, but found more than enough support down at the $101 level to turn everything back around and keep the market afloat. In fact, the support was strong enough to push the markets up roughly 1 dollar, which formed a nice-looking hammer for the daily candle. With this hammer, I suspect that we are showing that the market wants to go higher again, but we are and what I would consider to be a fairly tight consolidation range of the moment.

It would not surprise me all to see this market go sideways for a little bit, but I would suspect that the best way to be in this market is the long, and certainly not short. Even if we do go back and forth, quite frankly I don’t want to be bothered shorting this market as it has been far too bullish over the last two months. That being said, a pullback would necessarily surprise me either, but I suspect that the $100 level is going to be massively supportive at this point.

$104 is the trigger for much higher prices.

The $104 level for my money is the level that we need to overcome on a daily close to see this market go much higher. At that point in time, I would suspect that the market would eventually find the $110 level, which has been significant support and resistance in the past. Because of this, I would certainly be heavily bullish of this market above the $104 level. However, nothing moves straight up or straight down when it comes to financial markets, and this one certainly won’t be any different. Nonetheless, I still think that the crude oil markets are going to continue to improve over the longer term.

The market looks like it is just breaking out of a “W pattern”, which of course is a very bullish sign as well. Based upon the measurements from that pattern, I would suggest that the market is probably going to target roughly $111 or so eventually.

Crude Oil 22614

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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