By: DailyForex.com
The WTI. Oil markets drifted slightly lower during the session on Tuesday, but found a little bit of support in approach the $94 handle again. Ultimately, this market continues to look like it wants to go sideways in the meantime, and as a result there isn't much to do as far as trading is concerned in the spot market or futures market.
However, what the CFD trader and the futures trader will be able to do, the option trader will do quite well at. After all, the lack of volatility gives you the possibility of selling spreads daily, in order to pick up some premium. Granted, we will break out or down at one point or another, but this option has worked fairly well over the last couple of weeks.
Federal Reserve
The Federal Reserve will of course dictate what happens next in the oil markets, via the possible tapering or not of quantitative easing. Ultimately, I believe that this market will offer selling opportunities above. Rallies will be shorted by larger money, unless of course the Federal Reserve suggests that the market can count on easy money for longer than anticipated.
Shorting resistive candles above at the $98.50 level is a good set up, but even better is above at the $100 level. I think that rallies will offer selling opportunities that resistive candles will accentuate, and I of course will be pounced upon by sellers time after time.
I won't be interested in buying this market unless of course we see some type of large supportive candle on the weekly timeframe, or the Federal Reserve comes out and make that announcement the people are waiting on about the tapering. If we can get above the $101 level, this market suddenly becomes very bullish, as it would show a complete smashing of resistance above, and at that point in time I believe that this market will go to the $108 level, and then the $110 level next as it makes sense based upon the previous consolidation area back during the months of July and August.
