By: DailyForex.com
The WTI Crude Oil markets fell initially during the session on Monday, but as you can see the $104.50 level offered far too much support for the sellers to break it down. Nonetheless, I still think that this is a market that has gone so far that you simply cannot get involved at these high levels. Because of that, I am on the sidelines in this marketplace although there was a hammer formed for the Monday session, which of course is typically a very bullish sign.
This is a parabolic market by all means, and as a result it is a dangerous one. On top of that, one has to wonder how much farther this can go without a significant pullback, which typically will be very violent in a situation like this. I think that the $104 level will be very important, and if we can break down below that number is very possible that we could go much, much lower.
This market is running on emotion only
The market seems to be running on emotion, and nothing else at this point in time. Because of that, it's very possible that we will have another leg higher, but quite frankly I think that it's very dangerous at this point time to be involved. If I had been quick enough to catch this move higher in the beginning, I would more than likely be trying to collect my profit somewhere in this general vicinity. Simply put, this is a very quick way to lose money at this point time, and only the "weak hands" tend to get into the marketplace of this point. There also the first people to get out, and as a result it ensues that there would be mass selling from time to time.
With all that being said, I am on the sidelines, but I would expect see the $110 level offer enough resistance that if we did somehow make up there, that could be one of the best shorting opportunities of the entire year, and probably one of the most profitable ones as well.
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