Crude Oil Markets Getting Exhausted

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been all over the place during the Thursday session, reaching as high as $116.50 or so before pulling back. The market pulling back from there has seen oil drop all the way back down to the ¥110 level. Underneath, the gap from the open on Wednesday has yet to be filled, so I do think that it is probably only a matter of time before we see an attempt to fill that gap.

Do not get me wrong here. I have no interest whatsoever in shorting this market, but I do think that we will get a day where crude oil suddenly drops $7 rapidly. This is what is going to be needed in order to build up the necessary momentum, but it is obvious that crude oil should continue to be a very strong market based upon what we have seen.

Crude Oil Video 04.03.22

Brent

Brent markets of course look exactly the same, and therefore I feel the same about where we are going. We tested the $120 level, but at this point, we are due for some type of pullback. That pullback will almost certainly be an opportunity to get long of a market that has a plethora of reasons to think it is going higher. The $100 level underneath will continue to be a “hard floor” in this market, and therefore as long as we can stay above there, I am thinking “long only.”

Do not get me wrong, someday we will see a massive fall in price, but we are nowhere near that right now, so each deep correction should be thought of as a buying opportunity.

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