By: DailyForex.com
The WTI the Crude Oil markets fell rather significantly during the session on Wednesday, but as you can see I am still looking at the four-hour charts for direction. The most notable candle be on the long red one during the session of course is the shooting star at the bottom of that range for the next candle. This is because it suggests that we are going to see further weakness, although I believe that this point in time that more than likely the $92.00 level will hold a support. As you can see on this chart, I have a big yellow box that extends from that level up to the $97.00 level, which of course I see if the top of the recent consolidation.
The markets look very calm at the moment, even though we lost quite a bit during the session. After all, it was a "risk off" day in the marketplace, but quite frankly these days we are simply seen a lot of back-and-forth type of trading. We may see some weakness at one point or another in the beginning of the session for Thursday, but it's very likely that we see some type of turnaround right afterwards. In other words, the algorithms are simply going back and forth, playing tit-for-tat.
Significant support all the way down to $90.00
I see significant support all the way down to the $90 level, and as a result even on a break down my probably won't get too excited about shorting. Granted, I could do it for a short-term trade, but in the end I think that the wiser choice would be to simply wait until we hit $90, and then buying on signs of support.
On the other hand, we could break the top of the shooting star that we formed towards the end of the session on Wednesday, and that of course is a bullish sign. This market could grind its way all the way up to $97.00 at that point time, but either way - it's going to be a bumpy ride.
.jpg "Crude Oil 4hr")