WTI Crude Oil
The WTI Crude Oil market went sideways before bouncing a bit during the day on Monday, as the $65 level offered support. That support extends down to the $64 level, and I think that this bounce of course is a sign of stability that the market needs. If we can break above the $66.25 level, I think at that point the market should then go to the $67 level, perhaps even the $68 level. I anticipate a lot of noise in this market, and I think that it’s only a matter of time before we get violent moves in both directions as there are many pieces. Because of this, I would keep position size is small and focus more on the back and forth than anything else.
Brent
Brent markets fell a bit during the day on Monday but found enough support near the $75.50 level before rallying again. By doing so, we wiped out the losses early in the day, and I think it’s only a matter time before we see buyers coming back into this market, perhaps reaching towards the $70 level above. The $75 level underneath it looks to be massive support, perhaps extending down to the $74 level. I think a lot of back and forth trading is probably what we are looking at, and I think it’s going to be very difficult to put a lot of money to work.