The WTI Crude Oil market had a very positive showing during the day on Thursday, breaking above the $60 level again. I believe that we continue to see a bit of consolidation in this area before we go higher. The $58 level below is in fact supportive in my opinion, which as it was certainly a resistive level in the past. The fact that we broke above there tells me that the market wants to go higher, but it makes sense that perhaps we need to take a little bit of a breather in this area in order to build up momentum to continue going higher. After all, it was just 2 months ago when we were as low as $43.
With that being the case, it’s very likely that we will eventually get that breakout to the upside, but in the meantime we are going to have to continue to try to build momentum. That momentum will finally show itself strong enough to break above the $62 level, which of course should send this market looking for the $68 level. If you can be patient enough, waiting for a break out above the $62 level is a longer-term trade.
No selling
I have no interest in selling this market until we get below the $55 level. Ultimately, the market looks as if it wants to change the overall trend, and with that being the case I believe that the market should continue to offer buying opportunities. If you are a little bit more aggressive, short-term supportive candles could be used in order to start buying as well, as the oil markets in general look fairly healthy.
We will have to pay attention to the US dollars the same time, because of course that can move counter to this particular market. Ultimately, I still think that we go much higher, but it’s very likely that we will see volatility going forward. After all, it is summer driving season in the United States, and that typically means higher oil prices anyway.
