The WTI Crude Oil markets fell during the session on Wednesday, as we continue to drop in value. However, the $105 level below should continue to be supportive as it was the resistance from the top of the ascending triangle, which should now offer buyers as the market has clearly shown itself to be bullish. A supportive candle in this region is more than enough of a reason for me to start buying. On top of that, the measurement of the highs of the ascending triangle suggests that the market is heading to the $113 level.

The candle from the Wednesday session does suggest that there are buyers below, so I feel that the market is in fact going to go higher over time, but at the end of the day there are plenty of reasons to believe that headlines could come into the marketplace and push the market higher over the longer term.

Headlines out there could continue to push the market higher, and I fully intend to capitalize on it.

I believe that there are plenty of headlines out there that could pushes market higher, the most obvious of which is of course the conflict in Iraq. With that, it’s going to be more than likely that we will see headlines coming out over and over again that should send oil prices higher. On top of that, it appears that the Federal Reserve is going to be a bit on the soft side, and that can work against the value of the US dollar. The US dollar falling could be a catalyst for this market to go higher as well, and with that oil markets could move in the opposite direction as well.

I don’t see an opportunity to sell this market, especially considering that the ascending triangle was so significant and obvious, so that being the case this is a “buy only” market going forward, and I see no reason why we won’t eventually hit the 113 level given enough time. I do think though that the 110 level will be a stop along the way.

Crude Oil 61914

Related Articles
  1. Mutual Funds & ETFs

    Top 4 Davis Funds for Retirement Diversification in 2016

    Discover the four best mutual funds managed by Davis Advisors that pursue different investment strategies that can help diversify retirement portfolios.
  2. Economics

    How Bernie Sanders Has Avoided Big Money (Mostly)

    Bernie Sanders hasn't entirely avoided PACs with his fundraising, but he has gotten a lot of bang for the buck
  3. Retirement

    Is it Safe for Retirees to Invest in Technology?

    Tech stocks are volatile creatures, but there are ways even risk-adverse retirees can reap rewards from them. Here are some strategies.
  4. Mutual Funds & ETFs

    Is Morningstar’s Star System An Effective Ranking Tool? (MORN)

    Learn why Morningstar's star rating system is not always a great predictor of future performance, and why investors should not pick funds on star ratings alone.
  5. Stock Analysis

    The Top 5 Oil and Gas Stocks for 2016 (XOM, BP)

    Read detailed analyses of the top five oil and gas stocks, and learn why they may be poised to rise in 2016 after a dismal 2015.
  6. Retirement

    Roth IRAs Tutorial

    This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it.
  7. Stock Analysis

    Top 5 Stocks Traded in the U.S. (GE, BAC)

    Learn about the top stocks traded in the United States in terms of average daily trading volume: GE, Apple, Bank of America, Microsoft and Facebook.
  8. Taxes

    Free 2016 Tax Preparation! Top Online Services

    A place that fills out and files your taxes free of charge? It's no myth, as long as you have a simple return. Read on to find the top preparers.
  9. Stock Analysis

    Company Overview: Qlogic (QLGC)

    Learn more about the world's leading manufacturer of Fibre Channel network adapters, a key component in high-speed corporate storage networks and data centers.
  10. Chart Advisor

    Watch This ETF For Signs Of A Reversal (BCX)

    Trying to determine if the commodity markets are ready for a bounce? Take a look at the analysis of this ETF to find out if now is the time to buy.
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  3. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  4. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
Trading Center