Crude Oil Price- May 7, 2014

Christopher Lewis

The WTI Crude Oil markets tried to rally during most of the session on Tuesday, but as you can see found far too much in the way of resistance of the $100.50 level, an area that has been a bit of an enigma to buyers lately. I’m not too concerned about this, I think we are simply trying to consolidate in this general vicinity, and as a result the market will more than likely just bang around here. Ultimately though, I do believe that this market goes higher given enough time, and that the $102 level will be targeted first.

Above the $102 level, we would then head to the $104 level, and then ultimately the $105 level. While I do not see the candlestick formation to get bullish quite yet, I recognize that breaking above the shooting star that formed on Tuesday is in and of itself a buy signal. After all, that is breaking significant resistance.

Too many variables out there point to higher oil prices for me to ignore them.

There are far too many things out there that could send this market higher. Because of this, I feel no interest in selling whatsoever. Granted, I can see where you can make an argument for the market dipping down to the $97 level, but I think given enough time we will see the buyers come back into play. On top of that, the $97 level looks fairly sturdy, and I think that perhaps we could be building a consolidation area between that $97 level and the $105 level. Consolidation that could be very profitable for traders during the summer months, a time period that tends to be rather range bound anyways.

On top of this, with everything that’s going on in the Ukraine, it’s hard to believe that oil prices will be affected one way or the other. Russia is a huge exporter of crude oil, and although it’s not necessarily the WTI grade, it will have a ripple effect through the energy markets on the whole. Therefore, selling is something that I just can’t do.

Crude oil 5714

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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