The WTI Crude Oil markets rose during the session on Tuesday, breaking above the $95 handle again. The fact that we broke above $95 is of course somewhat impressive, but I need to see this market break above $96 in order to be thoroughly convinced that the buyers have taken control. After all, the market has been moving on headlines more than anything else, and as a result it is a little bit difficult to take any move seriously in this type of environment. A daily close above the $96 level would more than likely send this market looking for the $100 level, which would be interesting to me from the long side.
As far selling is concerned, I do think that a resistive candle would be the way to go for it, but ultimately we need to wait and see what the daily print is. I believe that today’s session could be one that’s very important for this market. What I would like to see is a shooting star, simply because it’s easier to sell this market than buy it in a downtrend. However, you have to keep in mind that the market will do what it wants to do, and all you can do is simply follow it.
Iran, Libya, and whatever other noises affecting the market at the moment.
The Iranians potentially putting more oil into the marketplace of course will have an effect on all grades of oil, just as the Libyans did. However, I feel that this market may be trying to reach some type of bottom. I don’t know if it’s going to do it right now, but I see a ton of support down at the $90 level, so there is a good chance that we will see some sideways action in this general vicinity. That being the case, consolidation between $96 on the top and $91 or so on the bottom makes perfect sense to me. I’m not willing to trade this market quite now, but on a daily close and in tomorrow’s analysis, I fully expect to have some type of signal.
