The WTI Crude Oil market did very little during the session on Friday, essentially carving out a range between the $101 level on the bottom, and the $102 level on the top. Because of that, it appears that the market is simply trying to figure out its next move. I still believe that this area should be somewhat supportive, and perhaps after a little bit of a grind we will break to the upside. On top of that, if you look at the recent action, you can make an argument that we could possibly be starting an attempt at forming and ascending triangle. That of course is very bullish, thereby making a breakout above the $105 level particularly strong and should bring in a flood of orders.
In the shorter-term though, I feel that the $102.50 level will have to be overcome in order to start buying again. That isn’t asking much really, considering that the top of the daily range for Friday was in fact just below that area. I think that there’s probably a bit of noise in that general vicinity, so again, a daily close above the $102.50 level is what it will take to get me to start aiming for the $105 level.
Pullbacks are buying opportunities
I believe the pullbacks are going to be buying opportunities going forward, as long as we can stay above the $99 level. I think we should, especially considering that there are so many headlines out there that could move oil markets in general. There is a bit of economic softness here and there, but ultimately the situation in the Ukraine will continue to be a possible driver prices higher in all oil markets, even though the WTI grade isn’t found in Russia.
I believe the looking to short-term charts for pullbacks and supportive candles will probably be the best way to go, if we do not get the aforementioned daily breakout above the $102.50 level. I also believe that this will be an easy move either way, and as a result you’re probably going to be better off if you have the ability to trade short-term.
