The WTI Crude Oil markets fell during the session on Thursday as you can see, but stopped right at the $108 level, the area that we broke out of the consolidation area. Because of this, I believe that this market is going to find support in this general vicinity, so that way I am not going to start shorting. In fact, I believe that this market will find plenty of support below, and I believe that the market will continue to go higher.
However, I am not going to start buying this market until we get some type of supportive candle. With that being the case, I am going to be patient and wait until a daily close is in order to make my trading decision, but I have to admit that I already have an upward bias. Because of this, I think this market will more than likely try to break above the $112 area again.
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Quite frankly, West Texas Intermediate has absolutely nothing to do with the Middle East, although traders at places like Goldman Sachs and J.P. Morgan are using the turmoil in those countries to their advantage. They understand that traders are a typically fickle and dramatic group, and therefore think it's the end of the world every time something happens. With that being the case, they take advantage of all of the fear in the marketplace, although we all know that the Suez Canal would be opened by the U.S. Navy if it was closed.
In fact, I find it difficult to sell this market until we get below the $103 level, something that looks very unlikely at this moment in time. So having said all that, I still believe that I will be buying this contract sooner or later. However, if you have the ability to trade the CFD markets, you may want to go that direction as you can tailor your position size to cut down on risk as we are at the end of summer and in very illiquid market conditions.
