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Instability in the financial markets can either be good or bad for an individual investor, depending on in which direction they have traded. Crude oil jumped in recent trading & this certainly could have harmed traders who went short. Oil rallied almost 15 percent recently.

After US Oil’s low of $87.09, WTI has rallied but hit a technical price resistance area. This could drive US crude oil prices down over the coming few sessions.

The $99.70 to $99.54 area is a 1.618 per cent extension from the high of January 31st of $94.89 & the low of $87.09 & this region could provide a technical buffer for financial markets.

Considering the market trend of crude oil, traders who speculated long on oil ought to have seen rather healthy returns in recent trading action. Before the recent surge, we did witness bullish momentum. In financial spread trading, crude oil climbed above the $95.47 level, which suggested that a rally was probable, provided that it did not breach the $89.77 level.

Additionally, reviewing the commodities analysis and charts, it looks like speculators bought in the crude oil market after the black stuff breached the $88.10 level, & the prospective for a move to the upside increased.

If Nymex crude oil proceeds higher, then the markets might be looking at the $106.62 level as the next target price. For the near term, Nymex April Oil will have to maintain above the $89.70 level. $92.00 to $93.50 to will be crucial price support area.

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