The WTI Crude Oil markets rose during the session on Monday again, essentially confirming that the supportive hammer looks to be able to hold the market higher. With that in mind, I believe that this market is going to make a run towards the $100 level, and possibly even higher. Just above the 100 level, there is the $101 area which looks to be resistant as well. I believe that this is a thick "zone", and as a result sellers will probably step into the market somewhere in that general vicinity. That does offer an opportunity for short-term buyers to get involved.
On the other hand though, if we do clear the $102 level, I think that the market will continue much higher than, possibly as high as $108 as we would reenter the previous consolidation area. It's still possible, but this will be predicated mainly upon the value the US dollar and whether or not traders choose to focus on that, or a lack of global growth which of course is negative for oil.
Nonfarm payroll numbers
My suspicion is that this market will be relatively quiet until we get the nonfarm payroll numbers on Friday. That will offer insight as to whether or not US industry will be needing more oil, which of course brings in the question the supply and demand equation when it comes to this market. I don't think that the markets will melt down, and as a matter fact I think more than likely will we're going to do with see a bit of a consolidation area between $96, and the $100 level to the upside. Whether or not we can breakout above the $100 level to me is the real question going forward.
Besides, the $94 level offers quite a bit of support as well, so at this point time is just too difficult to start selling. Quite frankly, if you did not get involved on a break of the $100 level, you have missed the move to the downside. In the meantime, expect choppy conditions in the next couple of days to be relatively quiet.
