WTI Crude Oil
The WTI Crude Oil market went back and forth during the course of the session on Friday, forming a bit of a shooting star. At this point in time, if we can break down below the $48 level I think of pullback will be coming. However, we have seen so much in the way of strength recently that it’s difficult to imagine that this market is going to suddenly turnaround that rapidly. I think falling from here could be a short-term selling opportunity but I also recognize that the $46 level will more than likely offer quite a bit of support as it was so important in the past. With this, I believe that we are going to get a pickup in volatility as one would expect after and overextended move. With that being the case, you’re going to have to be very careful over the next several sessions.
Brent markets did very much the same thing as we struggle at the $51 handle. A break above there is a very bullish sign though, and as a result we could go to the $53 handle. A pullback from here would make a lot of sense though, because we have seen so much in the way of over exuberance when it comes to the upside. With this being the case, the market should be a bit exhausted, and having said that it’s likely that it needs to take a bit of a break or at least fall backwards to find enough momentum to continue going higher. I think short-term traders might be able to start selling, but a longer-term trade would be very difficult. I believe that the $48 level below will be massively supportive so the potential drop in this market will more than likely find itself running out of negative pressure at that point in time. With this being the case, you can either short a break down below the bottom of the candle for the session on Friday, or you can simply sit on the sidelines and wait for the supportive candle that looks very likely to appear below this area.