The WTI Crude Oil markets rose during the session on Tuesday, after falling below the $102 level and testing it for support. With that, I feel that this market will continue to go higher, as we most certainly closed at the very top of the range for the session. And of course shows that there is nice strength underneath, and that the market should continue to find buyers anytime we pull back. That being the case, I am very bullish of this market overall, and am essentially in a “buy only” mode at the moment.
Looking above, I think that the $104 level will continue to offer resistance as well, and think of it as a large “zone” heading back up to the $105 level. That being the case, it’s very possible that we pull back from that area from time to time in order to hold up momentum to breakout to the upside. A move above the $105 level would of course lead to a much higher level in this marketplace, probably heading to the $110 level as it is the next large, round, psychologically significant number.
Don’t forget that there are other headlines out there waiting to happen.
I believe that there is also the possibility that we get headlines the move this market as well. After all, the Russians are still in a situation where they are in hostilities with the Ukrainians, and as a result headlines could cross the wires that push oil markets higher. Have a hard time envisioning a headline it’s going to push oil lower, so I think the real risk is always going to be to the upside. With this, I think that buyers will keep that in mind and continue to support this market going forward.
The only way that I see the possibility of selling this market is if we break down below the $99 level, entries we probably even as low as $97. That seems very unlikely, and as a result it’s not even a thought at this moment in time, although of course we never really know.
