The West Texas Intermediate market rose during the session on Thursday, plowing into the $95.50 level as you can see, which has significant and the fact that it is the top of the recent consolidation area that we've been monitoring. Because of this, we have to wonder whether or not the gap can be overcome, and a move above the $96 level would in fact signify that. If we can get above there, I would be willing to buy this market on a short-term trade up to about $98.50 or so. Resistive candles in this general area would be nice sell signals as well though, and I do believe that any move higher is probably going to be temporary in nature.
Looking at the overall attitude of the market, and a bounce really isn't that much to imagine, as we have sold off so hard. However, I do believe that ultimately we are going to follow the value of the US dollar, either up or down, and with that being the case, it makes sense that the Federal Reserve will be closely watched.
Jobs numbers.
Oddly enough, during the Thursday session the biggest mover of the oil markets would have been the first time unemployment claims coming out United States much lower than anticipated. Remember, market participants are looking at the possibility of the Federal Reserve tapering off of quantitative easing, and we do know that the Fed is watching the unemployment situation in America to decide whether or not we can see them taper off of quantitative easing. This will of course have a massive effect on the value of the US dollar, and if the Dollar moves, this market will as well.
The area below is supportive as well, but the market is certainly weak at the same time. Because of this, I expect that the market will be choppy overall. I think a short-term buying opportunity may be appearing, but ultimately selling will come back into the marketplace as the trend will certainly continue if the jobs situation in America continues to improve, at least for the time being.
