The WTI Crude Oil markets rose significantly during the session on Tuesday, climbing back above the $97 level again. This candle simply retraced all of the losses that we found on Monday, ultimately keep in the market going sideways. This being the case, I feel that this market probably going to go sideways between now and Friday, which of course is the crucial nonfarm payroll numbers. There are a lot of questions as to whether or not the US economy is picking up or starting to fall back slightly, and that of course will have a massive effect on the demand for crude oil around the world, simply because the United States is the largest consumer.
With this, I think that short-term traders will probably benefit from this market more than anybody else. It would not surprise me at all to see this market stuck between $96 on the bottom, and $98.50 on the top. With that, selling towards the top of that range on the short-term charts that show signs of resistance is the only real plan I see for the bearish at the moment, just as buying towards the bottom of that range on supportive candles is the only way I see a play the market from the long side.
Federal Reserve and the effects of jobs numbers.
The job situation continues to be the one thing that the Federal Reserve pays the most attention to, and with the last jobs number been so poor for the month of December, you can bet your bottom dollar that most traders will be paying attention to this announcement on Friday. If the Federal Reserve sees decent jobs numbers, continue tapering could be in the cards, which of course will drive up the value the US dollar. If the value the us dollar increases, more than likely this market will be affected in the sense that it will take less of them to buy a barrel of oil. However, there is also the possibility that markets look at it as a strengthening US economy, which of course could drive up the value of oil as well. So in other words, I do believe that ultimately this market will go higher. However, the next couple of sessions will be back and forth.
