WTI Crude Oil
The WTI Crude Oil market rallied a bit during the trading session after initially falling on Tuesday, as we continue to see $71 offer a bit of support. However, the $72 level, and the area just above it, continues to be very resistant. I think that the market continues to be very noisy and difficult, but eventually we will probably break out to the upside as we worry about supply issues and the Iranian sanctions that could cause them.
At this point, I suspect that a move above the $73 level is needed for confidence, then I think buyers would come in and push the market to the $75 handle. However, if we pull back and broke below the $71 level, we would probably find support at the $70 level.
Brent
Brent markets found support at the $80 level, reaching towards the $81 level after initially falling from there during the trading session on Tuesday. At this point, the $82 level would be the target, but there is so much in the way of noise that is difficult to hang onto a trade. I suspect that longer-term traders are buying the dips and hang on but you need to have the appropriate trade size and the appropriate capital backing that position. If we were to break down below the $79 level, then I think we would break down rather significantly.