Crude Oil Markets Have Slight Hesitation During the Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has originally shot much higher during the trading week, but then turned around to show signs of life again. That being said, the shooting star I think suggests a pullback but not necessarily a breakdown. If we were to turn around a break above the top of the candlestick, then the market is likely to go looking towards the $90 level. All things being equal, this is a market that is bullish for multiple reasons, and therefore you need to just stick with the plan, finding value and taking advantage of it whenever you can.

WTI Oil Video 24.01.22

Brent

Brent markets have rallied as well, but then turned around to show signs of life again. All things being equal, this is a market that gave up a little bit of the gains but still looks very bullish. In fact, we have gotten a little bit extended, so any pullback at this point in time should offer plenty of opportunity. I have no interest in shorting this market, and I believe that there is a massive floor in the market at the $80 level. Looking for any type of value is probably the best way going forward. If we break above the top of the candlestick, that would also be a very bullish sign as well. Ultimately, oil is still in short demand, and it is likely that we will continue to see supply constraints. The $80 level underneath should act as a “hard floor” for the buyers. Anything underneath there would probably constitute some type of correction.

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