The WTI Crude market has seen quite a bit of choppiness recently, and although the day was positive during Friday, I had recently expressed that I was going to start following the shorter-term charts. Quite frankly, no matter what news crosses the wires at the moment, the market simply needs to grind its way back and forth.
This market is getting difficult to trade, and as a result I have been forced to look at these short time frames in order to find little support and resistance areas. This has become basically a scalpers market, and one that cannot be traded for anything more than a few hours at the time. Looking at this chart, it appears that we are going to find a range to chop around in for the summer. Right now, the best candidate is the $92.00 to the $98.00 level. However, there is still far too much choppiness to even be sure about that.
Tight stop losses, or possibly options
The way to trade this market going forward is going to be using tight stop losses, or possibly options instead of playing the futures market itself. Those of you that have the ability to play the CFD market may use that as well, simply because it can keep you out of trouble by using a more granular position as opposed to the full standard futures contract.
In the meantime, I believe that the $97.00 level is offering enough resistance to become a problem. On the other hand, I think that this market will find quite a bit of support at the $95.50 level as well, and because of this I think that a short-term trader can do quite well in this general vicinity.The current price action looks like it is trying to drift a little bit lower, so my suspicion is that when we get into the Monday session we may have a little bit of a pullback. However, you would be foolish to think that overall this market is going to selloff for anything significant at this point. Because of this, I suspect that we have about $1.00 worth of falling to do in the meantime.
