The WTI Crude Oil markets fell during the course of the session on Tuesday, testing the $102.50 level in order to find support there. That being the case, we feel that the market should continue to find this gap supportive, and as a result we should go higher from here. That being the case, we need to find a supportive candle in order to get involved, but certainly would not sell this market. As you can see I have a triangle drawn on this chart, and the ascending triangle measures for a move up to the $113 level. I still believe that that happens given enough time, but obviously we have a lot of resistance to chew throughout the $105 level.
Ultimately, I believe that we will break above that level, and once we do it will be a very strong move. It will more than likely be a bit like a “beach ball held underwater” in the sense that it will shoot straight up once we finally break above that level.
Nonfarm payroll numbers.
One potential catalyst for the WTI Crude Oil markets to rise during the course of the week could be the nonfarm payroll numbers. If they are strong enough, we could see demand expectations rise, which of course would pushes market higher. However, we also have the US dollar gain strength at the moment, and that can cause a little bit of a negative tone to this market. Ultimately though, I think that the writing is on the wall, and that this market will ultimately go higher.
I think that once we get above the $105 level, anytime we pull back will be a potential buying opportunity, and a supportive candle will be more than reason enough to start buying as well will be considered to be “on sale” at that point in time. I believe that the $99 level is the absolute “floor” in the market, and as a result I couldn’t sell this market until we get well below that level. In the meantime though, I think that’s very unlikely.
