WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied again during the trading session on Monday to make a fresh, new high. Furthermore, the market is testing this $78 level and trying to continue the overall upward momentum towards the $80 level. It is obvious that crude oil is very bullish, so at this point I am looking for short-term pullbacks to take advantage of. The volatility will continue to be the main driver of this market and the main feature that you can expect. At this point, the $75 level should be supportive and should be thought of as the “floor the market” currently. With this, I think it is more likely that buyers will come back into the market to pick up dips for value.
Brent
Brent markets have broken above the $80 level, freeing the market to go much higher. The $80 level of course is a large, round, psychologically significant figure, and an area that has been very difficult to overcome over the last several days. Now that we have broken significantly above there, Brent is more likely than not to continue going higher, and I believe that the next area for targeting will be the $82.50 level.
Pullbacks at this point in time, the $80 level should be supportive, and I think that support extends down to the $77.50 level. With that in mind, I have no interest in shorting this market and I do think that dips continue to be bought. Energy markets have been extraordinarily bullish as of late, and the most recent move has been yet another example of this, kicking off a bullish flag that could measure for a move towards the $88 level before it is all said and done.
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