The WTI Crude Oil markets fell during the session on Thursday, dipping below the $92 level. With that being said, it’s on enough support to pop higher, and form a nice-looking hammer. This hammer suggests that perhaps the market is going to bounce from here, something that would not surprise me at all. After all, this market has been sold also drastically that one has to think that there has to be a certain amount of value hunters out there right now.
On top of that, this area was supportive in December as well, so I believe that this market will more than likely get a nice bounce to roughly $95, but that of course is in guaranteed and if we managed to break down below the bottom of the hammer, that would in fact be a very negative sign as well. At that point in time, I believe that the market would head to the $90 level, and possibly even lower at that point in time.
Nonfarm payroll numbers
The nonfarm payroll numbers will certainly have a massive effect on this market has people again to wonder about the jobs situation in the United States. If the jobs number is strong in America that often will signify that there could potentially be more demand in the oil markets, as more people being hired should lead to higher production in factories. On top of that, transportation markets will also pick up as well, as semi-trucks continue to demand more and more petroleum as well.
If we get weak jobs number, there is the possibility that the US dollar sells off, so quite frankly it wouldn’t surprise me to see the oil markets rise then as well. That would be because the Federal Reserve could not be expected to taper off of quantitative easing anymore in the near term, thereby weakening the US dollar. Ultimately, I think regardless this market going to go higher simply because it has fallen so far. Do not expect a long-term move higher, but a move above $93 is interesting enough for me to take a crack at a couple of dollars’ worth of gains.
