The WTI Crude Oil markets rose during the session on Thursday, breaking the top of the hammer from the Wednesday session. This of course is a very bullish sign, and as a result I believe that this market will continue to go higher. However, today is nonfarm payroll Friday, so of course there will be a significant amount of volatility during the trading day. Nonetheless, I believe that ultimately this market will continue to go higher, and because of this I would look at pullbacks as a buying opportunity.
The fact that we closed at the very top of the range for the session also suggests that there is a certain amount of strength as well in this market, and because of that I feel that we will ultimately head back towards the high at the $105 level. I do see a significant amount resistance of the $102.50 region, extending up to the $103 level, but once we get above there, I think it’s a pretty easy move higher.
Nonfarm payroll volatility could mean short-term opportunities.
In this type of environment, I have absolutely no interest in shorting the oil markets. I believe that ultimately, this market goes higher, so there’s absolutely no reason to think about selling. If after the announcement today we see this market fall, I will be looking at it as a potential to buy this market on the cheap so to speak. I will look to the short-term charts for signs of support, especially around the $99 where I think there will be significant buying clusters.
It really isn’t until we break down below the $97 level that I would consider selling, and even that probably wouldn’t be that easy of a trade. Going forward, I can’t imagine that we will be able to break down anyways, and will always look at pullbacks as potential buying opportunities or perceived of value. The real question is whether or not we can get above the $105 level, which I think we will eventually. It will take some time and a significant amount of effort, but eventually I fully expect to see this market continue higher.
