The WTI Crude Oil markets gapped to the downside during the session on Thursday, but found enough support at the $104 level to cause the market to form a little bit of a neutral candle. This is the upper part of the previous ascending triangle, and that of course should bring in quite a bit of support in this general vicinity. However, on a move back above the $105 level, I would be a buyer as this market should continue to go higher towards the $107.50 handle. That area will offer a significant amount resistance, but ultimately I believe it will be broken.

This market should continue to go higher overall though, and we are looking at a significant uptrend line as seen from the bottom of ascending triangle anyway, so I really don’t see any reason why I would be interested in selling this market until we get well below the $102 level, which is the most recent low that the market has seen.

With that being the case, I feel that the market is still trying to make “higher lows”, which of course is the very essence of an uptrend. With that, it’s very likely that the market should continue to go higher over the longer term. I still believe that the $110 level will be attempted sometime this summer, so I continue to buy on dips.

Plenty of headlines out there to push is market higher.

There are plenty of headlines out there that could push this market higher, not the least of which would be the conflict in the Crimea, or the all-out war that we are starting to see in Iraq. With that, it’s very likely that this market will sooner or later get the headline to push this market towards that aforementioned $110 level that I think we are going to aim for. I believe that pullbacks will continue to offer plenty of buying opportunities, and short-term traders will probably continue to push the market overall to the upside.

Crude Oil 7414

Related Articles
  1. Personal Finance

    5 (Mostly) Costly Exotic Pets You Can Legally Own

    Exotic pets can be fascinating to look at, but most are expensive to acquire and maintain. And avoid being bitten, especially if you get a scorpion.
  2. Investing Basics

    What Does Plain Vanilla Mean?

    Plain vanilla is a term used in investing to describe the most basic types of financial instruments.
  3. Economics

    Explaining Manufacturer’s Suggested Retail Price

    The manufacturer’s suggested retail price (MSRP) is just what it describes – the price manufacturers recommend that retailers charge for their goods.
  4. Economics

    What Happens in a Make-or-Buy Decision?

    A make-or-buy decision happens when a company must choose to either manufacture an item itself, or buy it premade from a supplier.
  5. Insurance

    Explaining Indemnity Insurance

    Indemnity insurance is an insurance policy that protects business owners and employees from losses due to failure to deliver expected services.
  6. Investing Basics

    What Does In Specie Mean?

    In specie describes the distribution of an asset in its physical form instead of cash.
  7. Insurance

    What is a Force Majeure?

    A force majeure clause frees both parties in a contract from fulfilling their obligations in the event of some catastrophic or unexpected occurrence.
  8. Credit & Loans

    Explaining Equated Monthly Installments

    An equated monthly installment is a fixed payment a borrower makes to a lender on the same date of each month.
  9. Economics

    Calculating Days Working Capital

    A company’s days working capital ratio shows how many days it takes to convert working capital into revenue.
  10. Economics

    Calculating Cross Elasticity of Demand

    Cross elasticity of demand measures the quantity demanded of one good in response to a change in price of another.
  1. Can I borrow from my annuity to put a down payment on a house?

    You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. ... Read Full Answer >>
  2. Why is the Cayman Islands considered a tax haven?

    The Cayman Islands is one of the most well-known tax havens in the world. Unlike most countries, the Cayman Islands does ... Read Full Answer >>
  3. Can mutual funds invest in hedge funds?

    Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
  4. Why is Luxembourg considered a tax haven?

    Luxembourg has been the tax haven of choice for many corporations and mega-rich individuals around the world since the 197 ... Read Full Answer >>
  5. Who decides to print money in Canada?

    In Canada, new money comes from two places: the Bank of Canada (BOC) and chartered banks such as the Toronto Dominion Bank ... Read Full Answer >>
  6. What are the main kinds of annuities?

    There are two broad categories of annuity: fixed and variable. These categories refer to the manner in which the investment ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!