The WTI Crude Oil markets fell during the course of the session on Monday, but remains very much supported looking and positive overall. After all, we have broken above a major ascending triangle that had resistance at the $105 level, so we can pullback all the way to there looking for support and still be technically positive. Because of this, I look at pullbacks as potential buying opportunities, and would be very interested in going long closer to the $105 level on supportive candles.
Alternately, if we break to a fresh, new high, we feel that this market should continue going higher from there. The $110 level would be targeted at that point in time, and I would be buying dips on short-term charts, playing the longer-term bullishness that we see in the market right now. On top of that, there is the question of whether or not the US dollar is a little bit overbought at the moment, and that Dollar weakness could come into play as well.
Buy only market at the moment.
The best thing about the ascending triangle that we broke out of is that it is so obvious. I love these obvious shapes, because most experienced traders in the marketplace will notice them, and take advantage of them essentially turning them into “self-fulfilling prophecies.” A lot of analyst and authors out there will tell you to “go against the herd”, but quite frankly I think it’s better to go with the actual flow of the markets. You don’t want to try to outsmart the markets, you just simply want to let what’s working continue to work for you.
With that being said, I don’t have a scenario in which I sell this market until we break well below the $102 level, something that simply does not look likely at this point. Over the next several weeks, I fully expect this market to go much higher and be one of the better trades out there for retail traders that have the ability to play the oil markets via futures, CFD markets, or even options.
