The WTI Crude Oil markets gapped to the downside during the session on Thursday, but found enough support at the $104 level to cause the market to form a little bit of a neutral candle. This is the upper part of the previous ascending triangle, and that of course should bring in quite a bit of support in this general vicinity. However, on a move back above the $105 level, I would be a buyer as this market should continue to go higher towards the $107.50 handle. That area will offer a significant amount resistance, but ultimately I believe it will be broken.
This market should continue to go higher overall though, and we are looking at a significant uptrend line as seen from the bottom of ascending triangle anyway, so I really don’t see any reason why I would be interested in selling this market until we get well below the $102 level, which is the most recent low that the market has seen.
With that being the case, I feel that the market is still trying to make “higher lows”, which of course is the very essence of an uptrend. With that, it’s very likely that the market should continue to go higher over the longer term. I still believe that the $110 level will be attempted sometime this summer, so I continue to buy on dips.
Plenty of headlines out there to push is market higher.
There are plenty of headlines out there that could push this market higher, not the least of which would be the conflict in the Crimea, or the all-out war that we are starting to see in Iraq. With that, it’s very likely that this market will sooner or later get the headline to push this market towards that aforementioned $110 level that I think we are going to aim for. I believe that pullbacks will continue to offer plenty of buying opportunities, and short-term traders will probably continue to push the market overall to the upside.