The WTI Oil markets fell during the session on Tuesday as you can see, but the market bounced just above the $106 level in order to show support in the area. The market is consolidating just below, and as a result I find it very difficult to sell in this general vicinity. It's not that it can't fall, it's just that it will be very difficult for the market to sustain any type of bearishness in this area.
I believe that eventually this market will find a supportive candle that it can launch itself from, but until that candle forms, it's going to be almost impossible for me to go long of this market as I believe there are so many moving parts at one time that the markets going to be somewhat dangerous. After all, people are concerned about headlines coming out of Middle East, and of course the Federal Reserve and its tapering policy will be under intense scrutiny as well.
Getting close to some major decisions
We are getting close to some major decisions though. Obviously, the Federal Reserve is one of them but there are also a lot of decisions to be made by professional traders who are coming back from summer break, and as a result the liquidity coming back into the marketplace could push it in one direction or the other. After all, the "smart money" has been gone, so it'll be interesting to see what they do with this marketplace.
I do not like selling this market until we get below the $102 level, something that looks very unlikely at this moment in time. In fact, I would suspect that short-term traders are going to have a better time if this market as right now it looks a bit choppy and certainly tight for the longer-term trader. Hourly charts might be the way to go, and as a result I may start focusing on those in the next couple of articles that are right on this marketplace.
