The WTI Crude Oil markets had a positive session on Thursday, breaking above the $108 level again. I believe that this market will continue to have an upward bias to it, but there is a significant amount of resistance at the $110 level. In fact, that resistance goes all the way to the $112 level, so therefore I am very leery about hanging onto any position with any real length of time attached to it. However, the short-term trader may be able to focus on this range in order to make a few dollars here and there.
I also believe that there is a ton of support below, so you do not expect to see this market break down much farther than roughly $106 area with that being the case, I think that every time this market pulled back in a short-term chart, you can buy it and aim for maybe a dollar or two worth of gains. Again, I have a hard time believing that we are get a break above the $112 level without some type of announcement from the Federal Reserve or something of that ilk, and until then I would be very cautious about playing large positions.
Don't forget the Middle East
While most of the world focuses on the Federal Reserve and what is going to do about tapering off of quantitative easing, we should not forget about the Middle East than the various headlines that could come flying out of both Syria and Egypt. Because of this, I feel that this market will more than likely still have an upward bias to the regardless. In fact, there's just so many reasons why this market to go higher, it's almost impossible to sell it at this point.
I also believe that a break above the $112 level leads to much higher pricing, probably $115 first, and then possibly $120 after that. Going forward though, I think that it will be very choppy and volatile, so until we get above the $112 level, I will still be cautious.
