Crude Oil Markets Go Ballistic

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Monday before launching itself towards the $130 level. It has since pulled back from there to form a very ugly candlestick, but at this point time, it is obvious that crude oil was reacting to the possibility of sanctions against Russia. That being said, it looks like a lot of profit-takings have already happened, so I think we may get this opportunity again, once we pull back in order to find a little bit of value. This value is something that people have taken advantage of every time it shows up. At this point, “buying on the dips” will continue to be the process.

Crude Oil Video 08.03.22

Brent

Brent markets also gapped higher, shot towards the $137 level, and then pulled back rather drastically. At this point, the market has formed a massive shooting star which of course suggests that we may fall from here, but I think at this point you simply cannot be a seller of this market. Yes, shorting the market may work but I think you are better off simply waiting for some type of value underneath that you can take advantage of.

At this point, the $100 level looks to be the “floor of the market”, and therefore I think we will not see that broken anytime soon. The market will continue to be very noisy, but I think given enough time we will eventually see plenty of buyers jumping in. Ultimately, it is about finding value here just as it is in the West Texas Intermediate Crude Oil market.

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