WTI Crude Oil: Bullish and Grinding Sideways - 23 June 2015

The WTI Crude Oil market rose slightly during the course of the session on Monday, as the $60 level continues to be a bit of an equilibrium in this market. Ultimately though, I am bullish of the oil markets but I recognize that we are essentially grinding sideways. At this moment in time, it looks like a market that is simply going to go back and forth, with the $57 level on the bottom and the $62 level on the top.

I think that until this market breaks out significantly in one direction or the other, you are eventually going to have to take short-term trades for short-term gains or losses. Some of you will choose to go back and forth but I feel that it’s much easier to simply buy this market as it looks like it has quite a bit of underlying bullishness. Once we get above the $62 level, I feel that the market will break out to $68, and then $76.

Summertime

Keep in mind that is the summertime, and as a result markets tend to go fairly sideways as a lot of the big money is actually sitting on the sidelines. I think that’s what’s going on right now, and as a result I am simply buying this market every time it dips with any significance. I have no interest in selling until we get below the $57 level low, as I feel that we have started to build a little bit of a base to go higher as the breakout above the $57 level was of course significant. That was once resistance, and it is now acting as support which of course is classic technical analysis.

With this, I believe that a lot of longer-term traders will start to “buy-and-hold this market, especially once we get above the $62 level, as it would show conviction and momentum to the upside as we continue to grind our way to much higher levels. Of course, what would help in this case would be a US Dollar Index falling which looks very possible at the moment.

Crude oil 62315

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.