The WTI Crude Oil markets fell initially during the session on Wednesday, but found enough support at the $90 handle in order to turn things back around and form a hammer of sorts. I believe that this hammer signifies what I have been thinking for some time now, that this area will simply continue to be consolidation, and a move above the immediate area should signal that the markets going to go higher. Quite frankly, I would feel much more comfortable above the $100 level if I was going to start buying, and at that point in time I would anticipate the market going to the $103 level, albeit slowly.
I see quite a bit of noise between the $101 level and the $103 level. Because of this, I believe that short-term traders will continue to buy into this marketplace, and lift the market time and time again before finally breaking out above the all-important $103 level. The $103 level breaking higher would have the market heading to the $105 level. This is an area that will have even more resistance as far as I can tell, and as a result I think that it will be a pullback waiting to happen, but at the end of the day I think that we even go above the $105 level.
A positive day on a day that also saw the US dollar go higher.
The markets rose eventually during a day that saw the US dollar go much higher. This was based upon the Federal Reserve suggesting that the interest rates short-term related would be 1% by the end of the year next year. With that, I feel that this market will continue to go higher since it couldn’t even selloff during a day that saw the US dollar so strong.
Because of this, I believe that ultimately the oil markets will continue going higher, simply because we have a perfect situation for the oil markets to start falling. However, we could not do it, and as a result I think that this market continues to go higher and I have no interest in selling it at all.
