The WTI Crude Oil markets fell during the session on Tuesday, slicing through the $100 level. However, we’re not completely through the support yet, so I am not comfortable shorting. However, having said that I do recognize the fact that the market closed the very lows of the day, suggesting that perhaps we could continue to see selling. Because of this, I feel that this market needs to prove itself before start buying again.
That being said, I believe that the “W pattern” that we had formed recently suggests that we are in fact going to go higher eventually, it’s just a matter of time. I think that the concerns around the world are going to play havoc with all financial markets, and this one won’t be any different. With the situation in the Crimea ready to start nerves back up, it wouldn’t take much to imagine this market going much higher as concerns about Russian oil being taken off of the market creep into play.
All things being equal, I am still a buyer though.
All things being equal, I am still a buyer in this market. I just don’t have the right supportive candle. But quite frankly I believe that a supportive candle between here and $98 would be just about perfect. It would represent a move above the recent resistance, and a retest showing support. Because of that, we would be more than likely going back to the $105 level, if not even the $110 level which is my longer-term target.
I really don’t have a scenario which I wish to sell this market, but I do recognize that below the $96 level things get rather ugly. With the jobs numbers in America starting to improve, I believe that there will be a firm underlying bid in this market. In fact, I plan on adding to the position every time we pullback in show signs of support once they do get long of this market. However, it might be a few sessions before I get the original buy signal.
