The WTI Crude Oil markets fell during the session on Thursday, dipping down to the $98.00 level. That area of course found enough support in order to push the market back up and form a hammer. Because of this hammer, I believe that we are going to see a move higher, but there is a significant amount of noise at the $100 level, so I believe that it is in fact going to be a difficult move.
Above the $100 level, we could easily go to the $103 level. Having said that though, I am hesitant to think that it is going to be an easy move, and quite frankly I think that this will more than likely be a difficult trade to hang onto over the length of time it might take to get up to that level. This level is significantly resistive, but I think ultimately the market will go to the $105 level, which is a much more interesting level from a longer-term perspective.
Continued bullishness, albeit on short-term charts.
I believe that this market continues to be bullish, but it’s probably going to be based more upon short-term trading than anything else. A lot of short-term traders will probably get involved in this market, meaning that it should only add to the volatility and choppiness that we will see, not to mention the various headlines going around the world that will more than likely continue to add more nervousness in the financial markets.
The situation in the Crimea could in fact continue to have an effect on the oil markets as well, simply because Russia is a major exporter of crude oil. Granted, it’s not this particular variety, but at the end of the day there is a bit of a “knock on effect”, and as a result this market will more than likely be affected greatly by that too. Going forward, I would anticipate that every time this market pulls back, you could probably start buying in small positions for short-term gains, as selling is probably going to be almost impossible.
