Crude volatility increases

Crude oil (NYMEX:CLQ14) is up more than a dollar again today trading above resistance at 101.60-101.80 and reaching an early high of 102.68.

EIA inventory data showed a tremendous drawdown of 7.5 million barrels bringing further support to a short cover that was sparked by delays in Libyan oil exports (who would have thought?). The market had traded below 100 but soon after better-than-expected GDP data out of China helped stop the bleeding which were followed by industrial production increases domestically.

Now with news of sanctions being imposed on Russia over Ukraine, the market is finding further support as volatility increases. Going into the weekend, trades can now look to use the 101.60-101.80 level as support in a buy the first test mentality; a close below here though will signal a failure. The market is likely heading to test resistance at 103.19. A large lineup of U.S. data points this morning will be keep in signaling steady demand.
 

Resistance –102.40-102.47**, 103.19**, 103.60-103.89**, 104.23**,

Support –101.60-101.80***, 101.19*, 100.73-100.93**, 100.49*, 100.04*, 99.70***, 98.62**, 97.47

About the Author
Rich Ilczyszyn

Rich Ilczyszyn is Founder and Chief Market Strategist of iiTRADER.com. Rich excels at creating dynamic trading strategies for clients that establish solid positions, while remaining flexible enough to capitalize on market opportunities when they arise. By identifying market trends, breakouts, and failures in a timely fashion, Rich presents clients with the opportunity to realize their objectives while effectively managing their risk.

Rich is featured expert/trader and contributor on CNBC's "Futures Now" Show, and has been quoted in multiple of top-tier publications, including: The Wall Street Journal, Associated Press, Bloomberg News and Reuters.

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