Crude oil markets fell slightly at the open on Monday, perhaps in a reaction to the unlikelihood of an escalation in Syria, at least in the short term. This was something that a lot of traders were worried about over the weekend, and that could have been one of the main reasons we rallied last week.
The WTI Crude Oil market broke down a bit during the trading session on Monday, reaching towards the $66 level before having a bit of a bounce. I think we might be slightly overextended, so a short-term pullback may be possible. If we broke above the $67.50 level, then I think the market goes closer to the $70 level. Ultimately, I also look at the uptrend line on the chart as a bit of a floor in this market, so I think that shorting this market is something that you can do, but you must be very cautious and perhaps use a small position.
Brent markets did the same, pulling back towards the $71 level during trading. I think there is significant support at the $70 level underneath. The uptrend line underneath should continue to be important as well, so I think that it is probably best to wait for a short-term pullback to take advantage of to the upside rather than anything else. The alternate scenario of course is if we can break above the $73 level, then I think the market is free to go to the next psychologically important level in the form of $75. It is possible that we may see oil markets rally a bit more due to sanctions on Russia, but I think in the short term this is going to be a very difficult market to gauge correctly, so I would use a small position regardless.