The WTI Crude oil market fell during the session on Thursday as the inventory numbers in the United States remain elevated. Also of concern would be the overall health of the global economy, which appears to be stalling in several different places. Looking at the candle, you can see that a massive hammer has form, as we try to break down below the $92.00 level. With that candle being displayed, it's obvious that the area just below the $94.00 level is going to offer some bit of support.
However, I have been thinking that the $90.00 level is the bottom of the range that we are going to be in during the spring and possibly summer, and the $98.00 level being massively resistive area that would be the top of that range. Because of this, I think that we could get a bit of a bounce here but it should offer a selling opportunity.
The last couple of days have really shown a lot of weakness in this marketplace. Because of this, I am more apt to sell this market than to buy it. This is why I'm going to be patient and let any bounce happen, and then simply sell the first signs of resistance. The fact that the Monday and Tuesday hammers got broken down suggests just how weak the market is starting to get. However, I recognize the fact that there is a ton of support below, and a real meltdown seems to be a bit unlikely at this point.
Short-term trading
The market looks like we are going to be seeing a lot of choppiness over the near-term. Because of this, I will not be holding onto trades for any longer than is necessary. I will more than likely be buying or selling based upon shorter time frames, and exiting the same way. The market has been a bit oversold though, and because of this, I feel more comfortable selling up above.
It should be noted that the nonfarm payroll number can move this market as well, as it shows whether more workers in the marketplace could possibly mean more demand for energy.
