The WTI Crude Oil markets fell during the majority of the session on Friday, challenging the $96.40 level. I still believe that this market goes higher eventually, but the $95.50 level will offer as a magnet to price, and a supportive area. From this area, I would expect buyers to step into this market as it was the site of the most recent breakout. The supportive candle in this area has me buying this market and aiming for the $99 level again. That area is the gateway to the $101 level, which I believe is the ultimate target for this move.
On top of that, we are heading towards the end of the year, so I don't think that oil traders will be at their desks in general. Because of this, the market will more than likely be choppy in the meantime, and as a result I think that it will be difficult to hang onto any trade for more than a day or two.
Take your profits quickly.
This coming year, I like to take my profits quickly, simply because we never know when profit taking will enter the marketplace. Because of that, the market can move relatively erratic. That being the case, I have been beaten up in years past right around this time year, so you have to be very careful about that possibility.
The candle for the Friday session, is very bearish looking, and we did close off the very bottom of the session. Because of this, I do expect continuation on Monday, but quite frankly it's a short-term move. Look at all the noise below the $95.50 level, and you can see that there is a lot noise down there, waiting for the market to come back to it so that the buyers can get back into it. Having said that, it is very possible that we won't get a clear signal until January, so be patient, and you’re going to have to be. However, I do believe that we've seen the bottom of this market for some time.
