WTI Crude Oil
The WTI Crude Oil market spent most of the week rallying, but has ended up forming a bit of a shooting star. I’m not overly concerned about the uptrend yet though, because there should be significant support at the previous resistance barrier in the form of $55. I think that a pullback to this area should offer value the people will be willing to take advantage of. However, if we are below the $54 level, then I would be a seller as it would clear not only the bottom of the exhaustive shooting star, but also a support level. Alternately, if we break above the top of the shooting star, that’s a very bullish sign and should send this market looking towards the $60 handle above. I think that the market is getting a little bit ahead of itself though, so a pullback makes perfect sense.
WTI Video 13.11.17
Brent markets also rally during the week, but pulled back from the $65 level. I think we will also see a little bit of a pullback this week, perhaps reaching down to the $60 handle. I think that the market continues to find buyers on dips, but ultimately it’s only a matter of time before this pullback comes as we have gotten a bit extended. I think that the $60 level should offer support, but I also think that there is a significant amount of support at the $55 level. It’s not until we break down below that handle that I would be concerned and start shorting, but I do recognize that longer-term we have issues with the Americans, Canadians, and Mexicans coming in and flooding the market with crude oil. The short-term though, looks as if the buyers are willing to put money to work, perhaps after a little bit of value being offered.
This article was originally posted on FX Empire
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