The WTI Crude Oil markets initially tried to rally during the session on Wednesday, testing the $98.00 level and finding a significant amount of resistance. However, the market turned back around and then fell slightly below the $97.00 level, an area that I anticipate should be rather supportive. Unfortunately, we did not getting close far enough below the $97.00 level for me to be confident in selling this market, so I think at this point we just simply have a weak market that simply doesn’t know what to do at the moment.

I believe that ultimately the $95 level below will be massively supportive as well, so I would expect a bounce sooner or later, simply because we are certainly in the oversold condition at the moment. If we can get a bounce, I believe the $99 level will be targeted first, then the $100 level, and then possibly the $105 level if we can get that strong. However, right now there isn’t that much in this marketplace and looks that strong, so that could be a bit of a tall order.

US dollar could be an influence as well.

The value the US dollar could be influencing this market as well, as it continues to strengthen against almost everything else. However, the US Dollar Index formed a massive shooting star for the day, which of course means that perhaps will get a little bit of a pullback in the value the US dollar overall. Nonetheless though, I do believe that the US dollar will continue to strengthen over the longer-term, and that could be very bad news for the oil markets as they are of course priced in that particular currency, and the inverse correlation typically holds over long periods of time.

If we break down below the $95 level, I think we could see a little bit of a panic in this market, as we would head straight to the $90 handle. Ultimately though, oil traders do like to go along as often as possible, so I really do think that we will have some type of stabilizing effect relatively soon. At this moment though, I don’t see any reason to be involved.

Crude Oil 8714

Related Articles
  1. Chart Advisor

    ChartAdvisor for November 27 2015

    Weekly technical summary of the major U.S. indexes.
  2. Retirement

    Suddenly Pushed into Retirement, How to Handle the Transition

    Adjusting to retirement can be challenging, but when it happens unexpectedly it can be downright difficult. Thankfully there are ways to successfully transition.
  3. Mutual Funds & ETFs

    The Democratization of the Hedge Fund Industry

    The coveted compensations of hedge fund managers are protected by barriers of entry to the industry, but one recent startup is working to break those barriers.
  4. Investing

    What a Family Tradition Taught Me About Investing

    We share some lessons from friends and family on saving money and planning for retirement.
  5. Retirement

    Two Heads Are Better Than One With Your Finances

    We discuss the advantages of seeking professional help when it comes to managing our retirement account.
  6. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  7. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  8. Stock Analysis

    These are Twitter's 4 Biggest Bets for Next Year

    Looks at Twitter's plans for 2016 under CEO Jack Dorsey, who has returned to lead the company he founded seven years after he was replaced.
  9. Investing Basics

    Why Interest Rates Affect Everyone

    Learn why interest rates are one of the most important economic variables and how every individual and business is affected by rate changes.
  10. Entrepreneurship

    Top 5 Billionaires Living In Dallas

    Learn who the richest of the rich are in a city known for creating some of the world's wealthiest people, and read how they amassed their vast fortunes.
  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  5. Is the Wall Street Journal considered to be a conservative publisher?

    The Wall Street Journal is controlled by Rupert Murdoch via Dow Jones Publications, which in turn is owned by Murdoch's News ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

You May Also Like

Trading Center