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Key Levels to Watch for Crude Oil

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The crude oil market has been quiet—but expect black gold to get a move on soon.

Crude oil has been in a healthy consolidation over the past 24 hours, finding session highs at $95.98, and it has pulled back to just above $95.50 in the middle of the session's lows.

Better trade numbers out of China have helped support this market. Additionally, there is a lack of desire to sell this market given the current tension in the Middle East.

(Read More: Why Oil Isn't Sweating Syria: Traders React)

Traders will be looking to the Energy Information Administration inventory report Wednesday for a knee-jerk reaction, to either find a better buying opportunity or momentum to kick-start a bullish engine.

As mentioned Tuesday, resistance will be found at $96.16 to $96.39, and a close above here will be bullish. Only a close below our support at $95.15 will signal a consolidation lower.

The market has held above previous highs from April 29 and 30, and a sudden drop to $94.69 could bring a solid buying opportunity.

On the other hand, a close below $94.69 would allow the bear camp to take some control, and could lead to a consolidation down to the $93.30 to $93.50 range.

Rich Ilczyszyn is the founder and CEO of iiTrader. Follow him on Twitter: @RIlczyszyn

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