The WTI Crude Oil markets rose during the session on Tuesday, breaking above the $102 level. This of course is a sign that the market is picking up momentum, and as a result I believe that this market will continue to go higher, but it won’t necessarily be a straight shot up. I believe that there will be several pullbacks again and again, so therefore I believe that the short-term markets will continue to be what dictates this market in the long-term. The market will eventually break above the $103 level, but it may take a couple different attempts as the area has been significantly resistive back in the month of February.
Look at this chart, I believe that we will break above there and head to the $105 level. The $105 level is without a doubt more significant in my opinion, if nothing else just simply because it is a large, round, psychologically significant number, which we see a lot of stops placed at.
Courage will be needed.
Courage will be needed going forward if you are going to attempt to go long of this market. However, I don’t see any significant reason to start selling, and I believe that the $101 level will continue to be supportive. Hello there, I see the $99 level as being massively supportive, and it really isn’t until we get below the $97 level that I feel that I can’t short this market confidently. Having said that, there a lot of different ways that you can play this market, and I believe that perhaps the options market might be the best route right now. There is a lot of volatility in this market, so at least at that point in time you can define your risk well ahead of time, without going into the futures market which can be rather expensive, especially when you’re talking about a market that’s behaving like this. Ultimately though, I am bullish of the WTI Crude Oil market, therefore fully anticipate being long of it in one form or the other.
