In the WTI Crude Oil markets we saw a little bit of bullishness during the day on Thursday, but as you can see the $102 level was an area that quite frankly we would've have expected it. Because of this, I can't say that I'm overly surprised, but do recognize the fact that the on certainly favor a bounce from here, not some type of massive fall. I would suspect that there is probably a bit of support all the way down to hundred dollars, and probably even lower than that.
With that being said, I more comfortable buying then selling, but also recognize the fact that the $104 level probably has to be overcome in order for the buyers to feel comfortable for any great length of time. Because of this, it really comes down to what your risk tolerance is and if you feel comfortable taking on risk at this point. I don't really see that there's any great danger, because quite frankly you could have fairly tight stops in this particular situation.
Range bound trading can be very profitable.
If you been following this range for the last several months, you probably made an absolute killing. I know that several of my professional trader friends have done exactly that, and I do have to admit that oil isn't a market that I trade as frequently as the currency markets, but I certainly have been aware of how this market has tracked over the last three months. Quite frankly, there's really nothing here that makes me believe we are about to breakout in one direction or the other, and as a result this is one of those situations that works simply until it doesn't.
Try not to over think trading sometimes, it's just a matter of following where people were willing to buy, and willing to sell. This is a perfect example of that as we simply see buyers down in this general vicinity, so why question it really? There's no need to get overly concerned, someday the buying down here may not work, but quite frankly that's the whole idea of trading, you play the higher percentage move.
