Crude Oil Price- July 22, 2014

Christopher Lewis

The WTI Crude Oil markets rose during the course of the session on Monday, testing the $104.60 level. We closed at the very top of the range, which tells me that this market is still very bullish, and I believe that this market will make a serious attempt to break above the $105 level. A move above there sends this market looking for the $107.50 level, which is the top of the consolidation area in that region. If we can get above there, I feel that this market goes to the $110 level without too many issues, and that being the case the market should be a “by on the dips” type of situation.

Even if the market pulls back from here, I suspect that the market should have plenty of support below, so there’s really no reason to start selling this market as far as I can tell, and that being the case the market is one that I am “long only” at this point, and see no real scenario worth selling until we break down below the $99 level at the very least, and quite frankly I would feel even more comfortable below the $97 level. With that, I’m essentially just waiting for the market to get me the buy signal that I need.

Don’t fight the trend.

The trend is been very strong for quite some time, and as a result I don’t see any reason why shorting this market would make any sense. Quite frankly, there is so much in the way of upward pressure over the longer term that I think we will ultimately be in a bull market for some time.

Granted, this is the summertime, and that often means that we have markets in a relatively quiet. Because of this, we have to take the markets in stride, and recognize that the market could be very choppy and difficult to deal with. However, I believe that ultimately this is a “buy side only” market going forward and that longer-term trading is probably the way to go.

Crude oil 72214

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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