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The WTI Crude Oil markets tried to rally during the session on Thursday, but you can see that just above the $98 handle we ran into enough resistance to push the market back down and form a shooting star. This shooting star signifies that we may have a lot of trouble going higher, but I can see a significant amount of support at the $97 handle. Because of this, I don't think that the market is going to make any massive moves in the near-term, but even if we do break down I will look at this as a buying opportunity, especially as we get closer to the $95 level.

I believe that the $95 level, and possibly a little bit higher than that, will bring out a lot of buyers. The gap that once kept the market down, should now offer a supportive area, and because of this, I think we will see value investors come back into play.

End of the year lack of liquidity.

We’re getting close to the end of the year, and that always brings and a lack of liquidity. As far as the markets are concerned. Because of this, the moves could be a little bit a rag in this marketplace, but I do ultimately believe that we are still heading towards the $101 level. That area will be significant resistance based upon the fact that it was such significant support previously, but ultimately this market should look fairly positive. This will become exacerbated if the Federal Reserve looks less and less likely to taper off of quantitative easing, or perhaps in reaction to better US economic numbers.

After all, there is the possibility that the economy simply looks better, and therefore demand for oil should rise. However, at this late date in the year, I am not expecting any type of surge in one direction or the other. With that being said, I am mildly bullish of this market, but do recognize the fact that a pullback could be coming.

Crude Oil Daily

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