The WTI Crude Oil markets initially fell during the session on Monday as the week's trading got kicked off, but as you can see the $105 level has offered enough support in order to form a hammer. The biggest problem I have with this market right now is that we are simply in the middle of the trading range. I see support at the $103 level, with resistance at the $109 level. I also have to think that the $110 level will of course be resistive just simply because of the fact of the "large round psychological significance" of that number.
Another problem that you have to keep in mind is that it's the summer time, and that most of the big money is not in the market. With that being the case, I feel that this market is going to be somewhat range bound and choppy for the next couple of weeks. It really won't be until we get into the middle of September that this market will be easier trade, and in the meantime all I can do is play it based upon the $103 level, and the $109 level. We aren't anywhere near either one of those two levels, so quite frankly I just don't have a trade.
Options markets offer solutions
It is possible to sell calls above the $109 level, while selling bullets below the $103 level to make some money, but the biggest problem is that the premiums simply aren't that juicy at the moment. Also, you have to keep in mind that the Federal Reserve and its tapering program is going to be what drives this market. More specifically is the value of the US dollar that's going to drive this market, and since that's being driven by that, it's a long chain of events that is confusing the market at this moment. Truthfully, it's probably better just to ignore this market until about September 15, which at that point time we should at least have some general idea what the Federal Reserve is going to do.