WTI Crude Oil
The WTI Crude Oil market reaches high as $69.80 during trading pre-market, but once the futures traders in America got involved, they slammed the market back down to the $69.15 area. Since then, we have bounced quite nicely and it looks as if the market is going to continue to try to grind to the upside, but I see so much in the way of resistance above the $70 that I think it’s going to take a specific “supply negative event” for traders to jump in and bust through this major barrier that I think it extends to the $71 level. I believe that we continue to see a lot of chop in the short term.
Brent markets were a bit more resilient, as they recovered the losses much quicker. The $75 level above continues offer significant resistance though, and I think it is going to take some type of news item to finally push this market above there. After that, I see significant resistance near the $75.50 level as well. In other words, although Brent looks resilient, it’s got a lot of work ahead of it to continue the move higher. On the other side of that coin, I see significant support below at the $74 level, so I think we are going to continue to see a lot of back-and-forth over here as well, making it an ideal commodity to trade back and forth on short-term charts.