Crude Oil Markets Go Parabolic

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Wednesday and then shot as high as $112.37 during a spike. At this point, the market has then pulled back, showing that perhaps we are getting close to a major correction. Quite frankly, the markets have gotten so far ahead of themselves that this is exactly what I am expecting.

Having said that, I am not looking to short this market, I am looking to take advantage of value if and when it appears. I would be especially interested near the $100 level, on the first signs of significant supportive action. That level of course will attract a lot of headlines, so I think it makes a natural area of interest.

Crude Oil Video 03.03.22

Brent

Brent markets have also done a parabolic move during the session, as one would expect. Ultimately, this is a market that I think given enough time could go looking towards the $105 level, maybe even as low as the $100 level for more buyers. At one point during the session, the market was threatening the $114 barrier, but now we have gotten so parabolic that I think chasing this trade is probably one of the more dangerous things you can do at the moment.

That being said, I won’t short this market either, because we could see a massive spike higher based upon a headline coming out of the war in Ukraine. Demand continues to pick up, and I think that is going to be the story going forward. Crude oil looks like it is going to continue its overall uptrend, but it needs to cool off a bit to attract more traders.

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