The WTI Crude Oil markets fell during the session on Monday, crashing into the $99 support level. This is an area that offered quite a bit of resistance last week, so it’s not a big surprise to me that it offered support this week. Nonetheless, I feel that a lot of this pullback probably has more to do with the idea of taking profits at the end of the year than anything else. Because of this, I don’t read too much into this candle, and fully expect to see a buying opportunity below.
However, it’s almost impossible to trade this market over the next several sessions. Liquidity will be almost zilch, and as a result I would be surprised to see any significant movement at all. Regardless, I do understand that this market has made a significant turn to the upside recently, and that it is more than likely to go higher than lower given enough time.
Pullbacks should lead to buying opportunities.
With all this being said, I believe that any pullback that we see from here will more than likely meet quite a bit of buying pressure all the way down to the $96 level. It’s not until we get below there that I would even consider selling this market, and even then would only have to do so depending on some other fundamental factors. At the moment, I think that there are plenty of people who would like to be involved in this market the currently are not, which of course always sets up the likelihood that buyers will step in and support this market.
Keep an eye on the jobs report out of the United States, because I can also have an effect on this market. After all, if there are more people working in the United States that means there’s more demand for oil. That could push the markets higher, but ultimately I think there are several different reasons why this market can go higher, and therefore I am buying supportive candles as they come. I do expect to see a significant amount of resistance right around the $104 level, so a straight shot up is not what I’m expecting. Choppiness should continue, with an overall bullish attitude.
