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MENAFN- Daily Forex)
- The WTI Crude Oil market has been very sideways for a while, and I think it's very likely that the beginning of the year might see more of the same.
- That being said though, I think it is also a market that has a lot of things to contemplate in the near term as to how to determine which way to go.
- I believe given enough time; we have a situation where we have to pay close attention to the fact that we may perhaps be in the midst of forming some type of bottoming pattern.
Longer-term Consolidation
The oil market has a lot of different things affecting it right now, but without a doubt, one of the most important things to pay close attention to is the fact that the Trump administration in the United States will more likely be much more business friendly than the previous administration, and that means that traders will probably be betting on the idea of renewed demand from industry for energy, which of course energy is without a doubt the lifeblood of all of the economy. If the global demand for energy picks up due to more transportation, then it stands to reason that this is a market that will continue to see buyers jump into this market. Furthermore, it's worth noting that the $65 level has been a significant support level, and an area that's worth paying close attention to as it has been important over the last couple of years.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Can we break higher?
The only real question at this point in time will be whether or not we can break higher. I think we do, and I think that perhaps if we see a stronger than anticipated jobs number coming out from the Non-Farm Payroll announcement in January, that might be one of the reasons think the crude oil continues to go higher, because quite frankly it will show that the US economy still hums at the moment. The US economy is of course where a lot of WTI crude oil ends up, so it all ties in together quite nicely. If we do not get a breakout, then I think we just simply continue to do the same thing be done for 2 months now.
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