The WTI Crude Oil markets initially fell during the day on Tuesday, but as you can see found enough support to bounce and form a bit of a hammer. With that hammer, it appears that we are going to go higher again. Even though we keep falling, the truth of the matter is that there is enough action just below as far as buying is concerned that it’s difficult for me to feel comfortable selling this market. It’s not until we get below the $99 level that I would consider doing so, so this point time I still feel that this is a “buy only” type of market.
If we managed to break above the $102 level, I think that the market will then head towards the $105 level, and then possibly the $107.50 level after that. The market will then break out above there and head to $110, but at this point time I feel that the next couple of days will probably be fairly quiet, simply because of the nonfarm payroll announcement coming out on Friday.
Slightly bullish, yet difficult.
I see this market is been slightly bullish, but obviously it has been choppy for some time. You can see that we continue to go higher, but certainly we don’t do so in a very smooth manner. Every time we do rise, we get the market slamming straight back down. I think that this will continue, someone than likely this is going to be a market that’s much easier to trade on short-term charts than longer-term ones. However, if we have a decent nonfarm payroll number, it is likely that this market will continue to go higher at this point in time as it would show a potential catalysts for more demand.
On a move below the $99 level however, I would be a seller as this market should then head to $97, and the $95. However, I still think that there is enough going on below current levels to suggest that buying is the only thing you can do in this marketplace.