(MENAFN- Daily Forex)

• The West Texas intermediate market has seen crude oil initially gap higher, only to pull back and turned around to show signs of bullish pressure.
• At this point in time, it's obvious that we have a significant amount of resistance just above, so traders will be paying close attention to this level.
• The level is the $65 level, which is a large, round, psychologically significant figure, and therefore there will be a lot of interest in this area. If we can break above there, we might be a“off to the races.”

Technical Analysis

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The technical analysis for this market is pretty much the same as it has been for most of the last 2 months. The $60 level below is considered to be supported, just as the $65 level above is significant resistance. Ultimately, I think this is a market that will make a distinction as to whether or not demand will pick up, but we also have a lot of concerns when it comes to the fact that OPEC continues to increase production, throwing more supply into the markets. However, this is a time of year that technically we tend to see a lot of buying pressure due to“driving season” in the United States.

Ultimately, if we can break out to the upside I think we will probably go looking at the 200 Day EMA, near the $69 level, just as if we break down below the $60 level, then I think we drop down to the $55 level. The $55 level was the scene of a recent double bottom, and an area where I think you will see a lot of interest if we do in fact drop down to that area. However, the action over the last 3 days has suggested that the buyers start to become a little bit more aggressive, especially as volume is picking up. This for me at least is bullish.

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