Rising by 1.32% on the day, WTI crude oil contracts may be looking a bit toppish following a spike above the psychologically important $100 a barrel mark.  Rising since Sunday’s open, the commodity has gained by about 1.6% over the last 24 hours – up by 3.3% since hitting a low of $97.30 back last week.  The pace of momentum in just the short amount of time is expected to weigh on demand for the short term.

This could provide considerable barriers to higher price action – which is being temporarily supported by technical indicators.  A bearish divergence has surfaced in MACD – with the MACD signal line making lower highs even as the price action makes higher highs.

The waning demand is likely to force the price action to take note of the upcoming resistance barrier of $101.00 a barrel.  As such, we anticipate a move towards the $101, but a correction shortly after is not out of the cards – with a near term broadening formation clearly in the works, crude oil could be expected to once again test $100 along with support levels at $99.60.

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