The WTI Crude Oil markets did gain during the session on Wednesday, testing the $83 level for resistance. Needless to say, it did in fact find the $83 level as resistive, and formed a bit of a resistive looking candle. Granted, it isn’t quite a shooting star but it does suggest that perhaps the market is going to struggle to get above this general vicinity. I believe that this market has a significant amount of resistance all the way up to the $85 handle, so because of that I have got no interest whatsoever in going long at this point.
The candle looks as if it will more than likely offer selling opportunities, and the market looks as if it’s ready to continue to consolidate in this general vicinity. The $80 level below is massively supportive, and as a result I believe that this market will continue to bounce around in this general vicinity. The $80 handle would be a significant level for the market to get below, and if it did I believe that this market would break down rather significantly.
The US dollar continues to strengthen
The US dollar continues to strengthen overall, and as a result I believe that the commodity markets in general will continue to weaken. That being the case, the market will more than likely continue to go lower as I don’t really see any opportunity for the U. S. dollar to suddenly lose a lot of value. On top of that, demand has been pretty stagnant for petroleum around the world, and as a result light demand will demand light pricing.
If we do break out to the upside though, I recognize that the market would more than likely head to the $90 level. At that area, I believe that there is even more resistance, so at this point in time it looks as if the market will more than likely offer selling opportunities again and again. Once we do finally get below the $80 level, I believe we had to the $75 level given enough time.
