WTI Crude Oil
The WTI Crude Oil market when sideways overall during the day on Monday to start the week, as we continue to dance around the $74 level. I see a significantly strong resistance barrier near the $75 level above, and it will probably take a lot of momentum to finally break through it. If we do, then I think the market is free to go to the $77.50 level. However, I would need to see a daily close above the $75 level to be convinced of the efficacy of that move. In the short term, I think pullbacks will be momentum building exercises to finally make that move.
Brent
Brent markets were a bit more constructive during the day, reaching towards the $70 level. I think that if we can break above the $78.50 level, we will then go to the $79 level, and then the psychologically important $80 level. I think that short-term pullbacks are buying opportunities, and that should be how this market is looked at. Recently, we had seen the market reached towards the $76.50 level and find buyers. I think that will continue to be the theme here: buyers coming in on dips to take advantage of value when it occurs. If we do break down to a fresh, new low, the next major support level that I see as the $75 level, which has been important more than once. Overall though, I am very constructive.