By: DailyForex.com
The WTI Crude Oil markets had a slightly negative session on Tuesday, but you can see that the same general area is offering support as the $95.50 level continues to be a bit of a problem for the sellers. Nonetheless, what strikes me the most about this chart is that we have a "stair step" pattern going higher from the lows. Because of this, I feel that this market may simply be too choppy for sellers to eke out any strong gains by shorting this market.
.jpg "Crude Oil may 22")
I think that there are simply far too many support levels below to get overly aggressive on the short side. However, the overall market is relatively choppy as well, and because of this I feel that any long positions will more than likely be short-term at best. As a matter fact, I see this market is so choppy that you will have noticed over the last couple of sessions I've been using one hour chart instead of mice preferred daily chart.
Looking for a bounce at this point
I think more than likely we will see some type of bounce from one of the support levels just below, and as a result I simply going to ignore any sell signals again in the near future. In fact, although I think I am not overly bullish of the oil markets in general, I am certainly not bearish either.
I think that we will more than likely find support just below, and make it another attempt at the $97.00 level before it's all said and done. I don't know if we can break out of that level, but the longer-term charts to suggest that the $98.00 level just above is resistive as well, as is the $99.00 level too. Because of this, I don't expect any explosive move to the upside either, and this is why I will be taking profit rather quickly. I believe that the markets will simply bounce around for the short term and $1.00 increments as we go forward. Presently, if you are trading for anything more than a short-term trade you’re definitely going to want to avoid this market.