The WTI Crude Oil markets fell during the majority of the session on Thursday, finding the $101 level to be significant resistance. With that, the reality is that the market probably fell slightly because the $101 level has been support and resistance in the past. That being the case, we found the $100 to be supportive enough to push the market higher again, so the resulting candle ended up being a hammer. This hammer of course suggests that there are buyers below, and that the market should ultimately go higher. With that, the break above $101 of course is a bullish sign and there’s no reason why $102 will be targeted.
Looking forward, I fully expect oil markets to be bullish.
I fully anticipate this market to be bullish over the longer term, and I also fully expect see the $102 level get broken to the upside. After all, the market has shown quite a bit of support near the $99 level, which is higher than the previous low as $97. It’s possible that we are starting to form some type of triangle, although it’s early days at this point.
Keep in mind, the summer typically is fairly range bound for this market. With that being the case, I suspect that it will be the same, but I still believe in the upward bias. After all, the Russians are major exporters of crude oil, and that there are sanctions in the work against that particular country. Also, you have to keep in mind that there is generally a lot of fear based around trading at the moment, especially with the Crimean situation.
Going forward though, I think that headlines will continue to favor bullish action, simply because even with peaceful headlines coming out of the Crimea, there are concerns about the value of the US dollar, as well as potentially increasing demand for oil as well. With that, I have absolutely no interest in selling the oil markets, and will look at dips as potential buying opportunities.
