The crude oil markets have initially pulled back just a bit during the course of the trading session on Friday but then turned around to show signs of life underneath.Mentioned in ArticleWTI Oil$83.604+0.16%Brent Oil$84.509-0.38%
WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen a bit during the course of the trading session on Friday, but then turned around to show signs of life again. The candlestick for the Friday session was a hammer, which of course is a very bullish sign. Furthermore, the Thursday candlestick was also a hammer, suggesting that oil has much further to go. The $85 level above is obvious resistance, but if we can break above there then we would kick off the next leg higher in crude oil. I have no interest whatsoever in trying to short this market, as it has been so bullish for so long.
Brent markets also have formed a couple of hammers, which of course is a very bullish sign. Because of this, I think that it is only a matter of time before buyers come in and overwhelm again, perhaps sending the market towards the $90 level given enough time. If we were to break down below the hammer from the Thursday session, then it is possible that we could see a bit of a drop towards the 50 day EMA. The market continues to be noisy, but with a lack of supply and a surging amount of demand, it does make sense that this market continues to see plenty of bullish pressure. Quite frankly, the last thing I would want to do is try to short crude oil, because it is like a runaway freight train at the moment. Expect volatility, but favor the upside going forward.