The WTI Crude Oil market fell during most of the session on Monday, but as you can see found enough support near the $101 level to turn things back around and print a hammer for the day. Because of that, I feel that this market will continue to go higher, but recognize that there is a lot of noise above that could keep this market from being an easy one to be involved in.
The fact that we formed the hammer for the session on Monday tells me that even though we have the selling pressure come into the marketplace on Friday, there certainly enough buyers in the marketplace that the bullish attitude should remain. However, the noise that I mentioned previously in this article extends all the way to the $103 level as far as I can tell should continue to keep this market fairly volatile.
Ultimately, we go much higher.
If we can get above the $103 level, the next stop will be the $104.50 level above there, probably extending a resistance zone all the way to the $105 level. Breaking above there is what I would expect to see after a significant fight, and although this is what I anticipate I would also suggest that it’s probably going to be easier to be in this market by simply buying pullbacks that show signs of support. In other words, I believe that being in this market over and over is probably going to be the best way, as opposed to hang onto a buy-and-hold type of position. After all, even though I think we’re going to break out, who knows how long it will take it to happen?
Selling is almost impossible for me, as I believe there is a significant amount support near the $100 level as well. Below there, I see a ton of noise all the way down to the $97 level, and with that I just see far too much in the way of support below to even be bothered trying to place a short position in this obviously bullish market.
