Crude Oil Markets Pierces to Make New Highs
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied rather significantly during the course of the trading session on Tuesday, breaking out above the $85 level initially. That being said, the market pulling back shows signs of exhaustion, but at this point in time it is obvious that oil wants to go higher. There was a drone attack in the United Arab Emirates that had people jumping into the market initially, but quite frankly this is one that I think the most important thing you can think about is simply buying on dips. The $80 level underneath would be massive support, but I would be surprised if we even got anywhere near there.
Crude Oil Video 19.01.22
Brent markets also reach higher to show signs of strength and bullish pressure. That being said, a pullback does make a certain amount of sense, so if we do get that pullback, I think there will be plenty of value hunters underneath willing to take advantage of it. Quite frankly, this is a market that I have no interest in shorting, especially as the overall fundamental situation for energy looks to be so strong. With this, I think that any time you get an opportunity to pick up a little bit of value, you have to take advantage of it.
If we can get a shrinking US dollar, that will only add more fuel to the fire, giving us an opportunity to see even more tailwinds in a market that is incredibly strong to begin with. Keep in mind that oil does tend to be very volatile, so do not jump in with a huge position right away.
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