The WTI Crude Oil markets rose during the session on Wednesday, but most importantly closed above the $100 level. This is an area that has caused quite a bit of trouble for the WTI Crude Oil markets recently, and closing above it is in fact as far as I can tell a positive sign. Don’t get me wrong, I recognize that there is a significant amount of resistance above as well, but ultimately I believe this signals that the market is ready to continue going higher overall.
A move to the $103 level is probably the first thing that we will see, albeit in a choppy manner. There is a lot of noise between here and there, so quite frankly it wouldn’t surprise me at all to see several pullbacks on the shorter-term charts, allowing this market to go back and forth and giving you plenty of opportunities to get involved time and time again.
More of a grind than a run higher
I believe that the move is going to be more of a grind than a run higher at this point in time. Because of this, I think that it’s going to take a certain amount of wherewithal to hang onto the trade, and only those with true conviction will be able to hang onto it. Nonetheless, I do think that ultimately buying and holding until we hit the $103 level will more than likely pay off. Above the $103 level, I believe that it’s a much easier move to reach the $105 level which I see as the next target.
There are other options to the futures market in this particular commodity. You could use the CFD markets, the options markets, or even some ETFs. Because of this, I would highly recommend looking into alternate markets, as opposed to going directly to the futures markets that can be quite expensive to be involved with. Nonetheless, the WTI does look like it’s going to go higher, and if you have the ability to hang onto the trade, this should be a decent one.
