The WTI Crude Oil markets had a good showing on Friday, breaking above the top of the hammer that had formed on Thursday. This is a classic buy signal in the technical analysis sense, thereby sending plenty of buyers into the marketplace at that point. The market pulled back all the way to the 105 level on Thursday, and bounced from that level in order to form a perfect hammer. That was a decent buy signal, and most certainly breaking the top of that hammer was a decent buy signal as well.

With that being the case, the market looks like it’s ready to go much higher and we should see this market going back towards the $107.50 handle, where we found significant resistance last time. I do believe that this market will break above there eventually though, and that we will see the $110 level tested for resistance as well.

No way to short this market right now.

In my estimation, there’s absolutely no way to short this market. There are plenty of reasons for this market to continue going higher, and that will be especially true as long as the situation in Iraq continues the way it has been going on. This of course threatens oil supply, which of course always brings buying pressure into the market. However, there are plenty of other things going on that could affect this market as well.

Demand is increasing a bid in places like the United States, so that of course will elevate the price as well. We are in a nice uptrend, so shorting would be a very bad idea anyway. The ascending triangle that we broke out of suggested that we were going to go as high as $113, and there’s really nothing on this chart that tells me that it’s not possible. In fact, I believe that shorter-term traders will continue to buy this market on dips, making the bearish pressure almost nonexistent. The buyers will continue to buy and buy again, and as a result I believe that anytime we dip in this market it will simply represent value.

Crude Oil 62314

Related Articles
  1. Credit & Loans

    What SoFi's Super Bowl Ad Means for Your Next Loan

    Non-bank lender SoFi will air its first TV ad during Super Bowl 50. Here's how it's challenging big banks by providing an alternative approach to loans.
  2. Economics

    India: Why it Might Pay to Be Bullish Right Now

    Many investors are bullish on India for all the right reasons. Does it present an investing opportunity?
  3. Personal Finance

    What it Takes to Get a Green Card

    Grounds for getting a green card include having family members in the U.S., being a certain type of refugee or specialized worker, or winning a lottery.
  4. Fundamental Analysis

    The 3 Best Investments When Bull Markets Slow Down

    Find out why no bull market lasts forever, and why investors should shift their assets away from growth and toward dividends when stocks slow down.
  5. Investing

    Retirees: 7 Lessons from 2008 for the Next Crisis

    When the last big market crisis hit, many retirees ran to the sidelines. Next time, there are better ways to manage your portfolio.
  6. Fundamental Analysis

    3 Long-Term Investing Strategies With Strong Track Records

    Learn why discipline and a statistically valid investment strategy can help an investor limit losses and beat the market over the long term.
  7. Products and Investments

    There's a Reason They're Called Junk Bonds

    The closing of Third Avenue Managemet's Focused Credit Fund is a warning to investors and advisors. Beware the junk.
  8. Mutual Funds & ETFs

    Top 3 PIMCO Funds for Retirement Diversification in 2016

    Explore analyses of the top three PIMCO funds for 2016 and learn how these funds can be used to create a diversified retirement portfolio.
  9. Mutual Funds & ETFs

    The 3 Best Downside Protection Equity Mutual Funds

    Learn how it is possible to profit in a bear market by owning the correct selection of mutual funds that provide downside protection and opportunity.
  10. Economics

    The 2007-08 Financial Crisis In Review

    Subprime lenders began filing for bankruptcy in 2007 -- more than 25 during February and March, alone.
  1. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
Trading Center