The West Texas Intermediate Crude Oil market rallied on Friday after initially falling.
Enter your emailI look at this as a “buy on the dips” scenario, and that will be the way going forward.The market pulled back to test the $115 level for support, perhaps offering a bit of opportunity. The $115 level would be supported based on the fact that it was previous resistance in the shape of an
. Furthermore, the ascending triangle measures a $15 move. In other words, if the entire move is fulfilled, it’s possible that we could go to fresh, new highs.When you look at this chart, it’s obvious that there are plenty of buyers underneath every time we dip, just as we had seen during the session on Friday itself.
With the reopening of China, there should be plenty of demand for crude oil, as the market has been waiting for this. Ultimately, the volatility should continue to pick up, and there’s also the issue of Russian oil being sanctioned by the West. Because of this, the market is likely to see plenty of bumps along the way, but it is more likely than not only a matter of time before we go higher.