The WTI Crude Oil
The WTI Crude Oil market has struggled at the $69 level during the trading session on Tuesday, only to turn around and fall towards support at $68.50. The hourly chart is starting to form a couple of hammers, which of course is a good sign and therefore I think it’s only a matter time before the buyers come back into the marketplace and try to push things higher. This is certainly a bullish market, so I don’t have much interest in shorting it, and I think that even if the $68.50 level gets broken significantly, we will find plenty of buyers at the $68 level as well. In other words, it’s a “buy on the dips” situation.
Brent
Brent markets also have their own struggles above at the $77 level. Because of this, the market looks likely to pull back toward support, which I see at the $76.50 level, and then again at the $76 level. I certainly am bullish of oil, but I also recognize that a certain amount of digestion of gains is probably in order. Also, pay attention to the US dollar because it will certainly have its influence as well. With all this in mind, I’m a buyer of dips but I would be much more comfortable buying closer to the $76 level, especially if we get a bit of volume attached to it. The US dollar falling of course would help, so pay attention to that as well.