The WTI Crude Oil markets did almost nothing on Friday, as the nonfarm payroll numbers came out a bit better than anticipated. This shows that the Federal Reserve may taper sooner than anticipated, and because of this the Dollar should appreciate over time. However, the number wasn’t so strong that it suggests that the Federal Reserve is going to have to taper right away. Because of this, I think this keeps the market somewhat buoyant, and because of that I feel that this market will make a run towards the $99 level.
The $101 level should be the next target, and if we get over the $99, I don’t see there being much in the way of resistance or selling. The area is a bit of an “open gap” of space, and should give way to the buyers quickly. This is essentially what I believe will happen in the long run.
The pullback that could be coming…
The market looks like it is slowing down a bit, as seen over the last three sessions. The candles are getting smaller after shooting straight up the previous three sessions. The area just above will more than likely give way, but I think the market could pullback first in order to gather momentum, and then shoot through the resistance.
The market will continue to worry about the Federal Reserve and the possibility of tapering, but in the end I think the market will continue to favor the strength of this market longer-term. The area below current trading levels should continue to be supportive, and I think the $92 level is the beginning of that area. The $90 level is also a large, round number. And this should continue to keep the market afloat. That area will certainly attract buyers, and cause a bit of a large bounce as well. The market will find its floor at $90, and this should be a great long-term entry if we get the chance. However, I have to admit that I believe a drop to that area is the least likely of the scenarios available.
