The WTI Crude Oil markets fell during the session on Wednesday, retracing a lot of the gains that we saw on Tuesday. Because of this, it appears that the $97 level will continue to offer buying opportunities though, simply because we bounced off of this area I suspect that others are starting to feel that same way as well. I still believe that the $99 level is going offer a significant amount of resistance, but in the end, I believe that the market will get above there.
Once we clear the $99 handle, I think that the $101 level will be the next target. Above there, we have a consolidation area that had been significant for some time, and because of that I would take profits at the $101 level unless of course there was significant momentum. I don't believe that we could chew through this consolidation area to easily though, so I suspect that we would have a pullback, or two that we could start buying this market at after clearing the above-mentioned $101 handle.
Trend seems to be changing.
I believe that the present surge higher in this market is essentially the market trying to breakout to the upside. Ultimately, we could go as high as $110 before it's all said and done, and as a result I'm looking for buying opportunities as they come. You have to keep in mind that the employment numbers been slightly stronger than anticipated does set up a possible fed tapering soon, and while that could send the US dollar higher, knocking down the price of oil, the real move will probably be on the demand side. In other words, the price of oil should rise even if the Dollar does.
Selling isn't going to be possible until well underneath the $95 level, but there is so much noise below that area I would have a hard time believing that we could sustain any type of move to the downside with any type of veracity at all. Because of this, I am getting more and more bullish of this market as time goes on.
