The WTI Crude Oil market broke out of the ascending triangle during the session on Thursday, leaving the $105 level behind. This area has been very resistive over the last few months, and the move above is a major bullish sign. This will begin the next leg up, and based upon on the measurement of the triangle, I expect to see this market go to $113 before the move is all said and done. The market should provide plenty of buying opportunities between now and there, and I will be looking for short-term pullbacks to get involved to the long side.

The shape of the candle is impressive as well, closing towards the top of the range for the session. This is also a massively bullish sign as well. The fact that the market has risen so strong suggests that there is still significant buying pressure in this market. Because of this, it is possible that you might have to be patient and wait for the right pull back in order to go long. It could take a couple of days, or it could come quickly – I will make this decision based upon the daily candle.

The market made a statement during Thursday

The market breaking out tells me that we are going much, much higher. The market looks as if it is going to be a “buy only” market going forward, and only the truly foolish would short this commodity at this point. The demand picture looks good, and the economic strength of the United States will certainly come into play as well. This will put a focus on economic numbers out of America, and this will continue to shape the idea of demand picking up for oil in general, and this shouldn’t be much of a surprise as we go forward.

The $102 level below should offer plenty of support, and I think it is the “floor” in the market at the moment. I also see a lot of support at $99, so a break of the floor could only move it a bit lower. I have no idea how to short this market with this kind of momentum – so every time it falls it will be a signal to start buying again.

Crude Oil 61314

Related Articles
  1. Investing

    10 Ways to Effectively Save for the Future

    Savings is as crucial as ever, as we deal with life changes and our needs for the future. Here are some essential steps to get started, now.
  2. Stock Analysis

    The Biggest Risks of Investing in Netflix Stock

    Examine the current state of Netflix Inc., and learn about three of the major fundamental risks that the company is currently facing.
  3. Mutual Funds & ETFs

    3 Fixed Income ETFs in the Mining Sector

    Learn about the top three metals and mining exchange-traded funds (ETFs), and explore analyses of their characteristics and how investors can benefit from these ETFs.
  4. Insurance

    Getting Life Insurance in Your 20s Pays Off

    Find out how Americans in their 20s can benefit from a well-thought-out life insurance policy, especially if they are able to build cash value for retirement.
  5. Mutual Funds & ETFs

    Mutual Funds Millennials Should Avoid

    Find out what kinds of mutual funds are unsuitable for millennial investors, especially when included in millennial retirement accounts.
  6. Professionals

    What Accounts for One-Third of the Wage Gap

    Women who work full time still make less than men who have the same qualifications. One third of the pay gap may be due to gender bias and discrimination.
  7. Budgeting

    How to Travel to Tokyo on a Budget

    Planning a trip to Tokyo? Here are a few ways that you can make the trip more affordable.
  8. Investing

    What's Behind the Decline in Productivity Numbers? 

    There are several theories and hypotheses about low productivity numbers in the American economy. This article examines some of them.
  9. Economics

    Should the Fed Be More Worried About Asset Bubbles?

    While the Fed should be concerned that assets bubbles might impact economic stability, monetary policy is not the best tool to mitigate this threat.
  10. Bonds & Fixed Income

    High Yield Bond Investing 101

    Taking on high-yield bond investments requires a thorough investigation. Here are looking the fundamentals.
  1. Why have mutual funds become so popular?

    Mutual funds have become an incredibly popular option for a wide variety of investors. This is primarily due to the automatic ... Read Full Answer >>
  2. Who do hedge funds lend money to?

    Many traditional lenders and banks are failing to provide loans. In their absence, hedge funds have begun to fill the gap. ... Read Full Answer >>
  3. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>
  4. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
  5. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  6. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... 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!