The WTI Crude Oil markets rose during the session on Tuesday, as fears over the interaction between the West and Syria continue to rattle the markets. Now that it looks like the Americans may actually have some kind of limited military intervention, oil in all grades got a boost around the markets during the session. What's even more important is the fact that we managed to break to a fresh new high, so it does appear that the market is trying to breakout at the moment.
However, we still have the $110 level to overcome, an area that has significant psychological significance as well as previous support and resistance action. Because of this, it will be difficult to garner whether or not to buy or sell, but I do think that this market is going to go through that level in the short term. However, the market has moved so far in such a short amount of time that it's difficult to start buying up here. In reality, I would be much more comfortable buying this market on a short-term pullback as I believe buyers will step into the marketplace from time to time in order to keep the bullishness going.
Summertime
One minor concern that I do have is the fact that it is the summertime. Because of this, the volume simply aren't in the market, so they can be moved a little easier than usual. With that being the case, I think that it's possible that we will see this as a false breakout later, especially as traders who are more experienced and well capitalize come back to the markets in September. By then, there's a good chance of the markets will calm down, and the professionals will take that opportunity to punish amateurs.
Nonetheless, in the short term I believe that this market will offer buying opportunities, but just for short-term traders. That being the case, if you are short-term trader, start looking towards the hourly chart in order to find trading opportunities to take advantage of this bullishness, however long it lasts.
