The WTI Crude Oil market initially fell during the course of the day on Friday, but found enough support towards the end of the session to turn things back around and form a rather positive looking hammer. Because of this, the market looks as if it is continuing to find buyers every time we drop down, and with that I have no intentions of selling this market at all. In fact, I believe that we have recently broke out above a massively resistive area at $58. Now that we have broken above there, we came back down to test that area several times and therefore it looks as if we are simply taking a bit of a rest after the significant amount of momentum that needed to be put into this market in order to break out to the upside. This is a market that was sold off rather drastically, and now we are starting to see that the buyers have returned.
US Dollar
Looking at the US dollar in general, it looks like it’s going to continue to fall. If that’s the case, it should help the WTI Crude Oil market, as well as many other commodity markets. I think that every time this market pulls back we should start buying. I think that short-term charts could lead the way in order to start going long, and quite frankly if you have the ability to trade the CFD market, and keep your positions relatively small, you could probably just go ahead and start buying here. With that, the market looks like we could go as high as $70 over the next several weeks, and therefore I believe that every time we did it could be a nice buying opportunity going forward.
I have no interest in selling this market, and I believe that the absolute “floor” is down at the $55 level. We will not get down below there as far as I can see, and I believe that we have seen the absolute low in this market.
