The WTI Crude Oil markets fell during the session on Tuesday, testing the $58 region. Because of this, looks like the markets can tend to simply grind away sideways overall, and although I certainly have an upward bias in this market, I’m not necessarily that pressed to risk any serious amount of money in this market. I certainly wouldn’t play the futures market, but perhaps binary options or the CFD markets might work. For those of you in the United States with no access to either one, you can look into the various oil based ETFs.
Nonetheless, I believe that we will eventually break out to the upside and that a move above the $62 level should send this market looking for the $68 level. Above there, we would then target the $70 level. I do believe that we have broken out, and that we are sitting right on top of support at the moment. So if I was forced to take a trade it would most certainly be to the upside. I think short-term traders will continue to buy this market every time it pulls back, so that’s pretty much how I’m going to approach it.
Bullish overall
I believe that this market continues to go higher over the longer term, so I am bullish overall. With that in mind, I have no interest in selling this market and as a result I will only buy. I believe that every time we pullback it is going to offer a buying opportunity, and I think most of the market sees it that way as well. It will be interesting see what happens with the US dollar, as it almost certainly have a massive effect on the way this market behaves.
I think that the Crude Oil Inventory numbers coming out of the United States today will of course have a massive effect on this market, so if we end up having a pretty significant depletion of inventory, that of course will be very bullish for this market as well. I don’t really have a scenario in which I sell this market until we break down below the $55 level.
