The WTI Crude Oil market fell during the session on Wednesday, in order to show just a little bit of resistance. However, I believe that we are sitting on top of a significant amount of support as we have recently broken out to the upside. This sideways action will more than likely be a simple rest after the breakout, and as a result I feel that we are going higher fairly soon. I am looking for supportive candles in order to start buying, as I believe that the market is now getting ready to aim for the $70 level. By just about any metric that I can measure this market by, we have broken a major amount of resistance.

I think that short-term charts will probably lead the way, and in the meantime will more than likely have back and forth type of range bound trading. However, there does come a point where the buyers step in and push oil prices much higher, and I believe that if you are patient enough, you will be rewarded by going long.

Buying dips

I’m going to be buying dips in this market on short-term charts going forward. I believe that at least $70 will be targeted, and quite frankly we could go as high as $100 given enough time. That’s not going to happen anytime soon obviously, but we most certainly should see an uptrend for itself yet again.

I don’t really have a scenario in which I sell, but I imagine if we broke down below the $55 level, I would have to consider doing so. That would of course be a very negative move, but with the way we have seen the relentless bullishness enter this market, I find it difficult to imagine that happening in the near term. In fact, I believe that we are coming out of a massive W pattern which of course is a very strong reversal pattern.

Click on picture to enlarge