The WTI Crude Oil markets fell during Thursday’s trading, testing the $105 level for support. That being the case, we did in fact a bounce from there, so it appears that the market is still going to be well supported. The $105 level offered enough resistance previously that breaking the level to the upside was certainly a bullish sign, and as a result a move back down to that area should be supportive. Now that we have seen that, and have bounced roughly $.65 to the upside, it appears that the market is probably going to continue to grind in this general vicinity, but ultimately should break out to the upside as this market certainly has quite a bit of buying pressure beneath it.
The ascending triangle that had resistance of the $105 level suggests that the market is going to the $113 level at the very least. However, that doesn’t mean that the market is going to make that move rapidly. In fact, it’s probably going to be one of those markets that you can buy over and over on short-term charts, as the markets continue to move on various headlines.
Headlines continue to move this market.
This market should continue to move on headlines around the world, basically continuing to find various moments out there that can continue to move this market massively in one direction or the other. However, it should be noted that most of the potential headlines out there will be positive for oil, as such issues as the fighting in Iraq should continue to have fear in the oil markets and should continue to push prices higher given enough time.
I do not believe that this market will fall for any length of time, and quite frankly anytime it falls you should be thinking of it as a potential buying opportunity. After all, we aren’t anywhere near the $113 level, and a massive ascending triangle like this is normally noted by everybody in the marketplace, making it a bit of a “self-fulfilling prophecy.”
