Since March 8, April WTI crude oil futures have been grinding north toward the $60.00 level. Lagging inventories boosted bullish sentiment, driving values up $1.25 upon the release of Wednesday’s EIA stocks figures. It appears to be only a matter of time before the $60.00 handle is tested.

As we roll into the second half of March, the crude oil buying season is in full effect. Subsequently, any reason at all to be long WTI is being aggressively priced. This week’s inventory cycle was a prime example of this phenomenon; stocks on hand fell and price rallied with conviction. From now until the end of May, bullish participation is likely to be the norm. Expect buyers to step in on every major dip.

April WTI Crude Oil Futures

Today has been a whipsaw affair for April WTI crude oil futures. At press time, price is very nearly unchanged, near the $58.50 handle.

These two levels will be the ones to watch in this market:

• Resistance(1): Psyche Level, $60.00
• Support(1): 38% Retracement, $57.26

Bottom Line: As long as today’s high of $58.95 holds, I will have buy orders ready to go from the 38% retracement at $57.26. With an initial stop at $56.99, this trade produces 52 ticks on a 1:2 risk vs reward management plan.