The WTI Crude Oil markets gapped slightly higher at the open on Monday, but as you can tell by the chart went back and forth and essentially ended the day where we started. This is a pretty volatile looking candle, and although it is a negative one in the sense that it’s closer to being a shooting star than anything else, the truth remains that there is a significant amount of noise and support below here.
The markets have fell during the session on Monday, pulling back down to support. The $100 level is looming just below, and as a result I think that the market will more than likely find itself looking for buyers in the general area, and because of that, I am hesitant to sell at this point. The market is more of a “wait and see” type of situation, and with that I am on the sidelines. The area above shows signs of resistance all the way to the $105 level, but the proclivity of the market should still to be to rise over time.
The oil markets will continue to have a boost from Russia as well.
The oil markets will continue to pay attention to the situation in the Crimea, and to what sanctions are going to take place against the Russians. The markets will react to headlines in violent fashion as well, so moves will be quick and dangerous for the sellers. The shape of the candle suggest that we will fight a bit here, and with that I think that this market will be difficult for short term traders, but those with longer term attitudes will find that patience will pay off over time. The markets will start to slow down as far as falling, so even if we drop from here, I am looking for the supportive candle below that sends the market higher.
A break above the top of the shooting star would show a break out to the upside and a serious momentum shift to the upside – forcing me to buy oil again and again on dips.