The WTI Crude Oil markets fell during the session on Tuesday, touching as low as $94.00 during the American trading hours. However, you can see that we did get a significant enough of a bounce to close at $94.86, which of course is just below the large round psychological number of $95.00 that traders typically will focus on.
The candle shape is somewhat like a hammer, but we did managed to break the bottom of the hammer from Monday. This to me is a very bearish sign, but I do recognize the $94.00 continues to be supportive. This market in fact is simply a big chaotic mess of supporting resistance all within a very tight range, with the significant support down at the $92.00 level, and significant resistance at $97.00 as well.
Summertime is coming, this market may not be easy to deal with
Quite often, the oil markets could be very difficult to trade during the summer months. Simply put, most traders are busy at the beach instead of worrying about what's going on in their perspective markets. You're just as likely to see a trader on the beaches in the Caribbean as in front of their screens during the month of June, July, or even August. With that in mind, this market a lot of times will simply drift sideways.
I personally have no opinion about this market right now, as it is obviously stuck in a five dollar trading range. If you are ultra-short-term trader, there are some possibilities for placing trade, but quite frankly this looks like an excellent opportunity to lose money in an extremely choppy and volatile market. Markets around the world are increasing their volatility due to illiquid conditions and general confusion, and this market of course would be no different. You simply have to look at the currency markets, stock markets, and most importantly the bond markets to see just how confused everyone seems to be. In these conditions, I have found it much better to simply avoid the markets that behaved like this simply because eventually somebody will make their decision, in this market will explode one direction or the other. In the meantime however, you will see little micro moves like we've seen over the last couple of sessions that simply go nowhere, but have the ability to do great damage to your account.
