The WTI Crude Oil markets rose during the session on Tuesday, breaking above the $98.50 level. That area is the opening to the $99.00 level, an area that I believe will be broken and allow the market to go as high as $101 in the short term. If that $101.00 that I think we could run into significant resistance, and we would be more than likely ready to see a significant pullback from that point.
If the market did somehow close above the $101 handle, I think this market would more than likely try to reenter the previous consolidation zone. During the month of October, which could have this market going as high as $104 eventually. However, that move would be choppy to say the least, and certainly difficult to hang onto. Is because of that that I would more than likely be willing to take profits at $101, and call it a day.
Pullbacks should offer buying opportunities as well.
Any pullback from this point time could offer a nice buying opportunity as well, as I see significant support right around the $95.50 level. That area should produce enough support, and interest since it was the site of the previous breakout, which caused this market to move this way in the first place. That would be the typical "what was once the ceiling is now the floor" type of move, and therefore I feel pretty confident that the pullback could be a nice opportunity.
Ultimately, I think this market will struggle to get above the $101 level for any real length of time. Anyway, simply because we are getting close to the end of the year, and liquidity will start to exit the marketplace. After all, most traders going to be worried about holiday schedules instead of their outlook on the oil markets. That being said, all trades at this point time should be treated as short-term trade only, simply because of the time of year. Do not get yourself caught in the marketplace in case the low liquidity causes the markets to be extraordinarily erratic.
