Crude Oil Price- March 11, 2014

Christopher Lewis

The WTI Crude Oil markets fell during the session on Monday, testing the $101 level for support. This area of course has been supportive in the past, as well as resistance. I believe that there is a significant amount of support only down to the $99 handle, and as a result I am not willing to sell into this week looking candle. Quite frankly, I believe that we will find a significant amount of buying pressure just below, and ultimately go higher. If you think about it, there are far too many reasons to feel that oil prices could go higher.

The Russians being involved in the Crimea is probably enough to think that we are only one errant headline or quote from seeing the market should back up. On top of that, the jobs number out United States was fairly decent all things considered, and that of course could suggest that there should be more demand going forward for West Texas Intermediate.

Continued volatility, but underlying bullishness

I believe that there will be continued volatility in this general vicinity, but overall I still believe in the bullishness of this market. In fact, you can see that we have formed a massive “W pattern”, which of course is very bullish. Ultimately, I believe that the market continues to go higher, and based upon the size of this pattern, could go much higher. I would not be surprised at all to see this market reach the $112 level, although it obviously won’t be overnight or anytime soon.

As long as economic numbers improve out of both North America and Europe, which generally has been happening, it’s not hard to imagine that there will be more buyers in this market as demand increases, or at least the perception of demand does. Regardless, I’m not selling this market simply because I see far too much in the way of support right around the $100 level, and quite frankly about every two dollars below there. There’s just simply too much to work through to the downside in order to be bothered selling.

Crude Oil 31114

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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