The WTI Crude Oil markets initially fell during the course of the session on Thursday game, but as you can see below the $91.00 level we got quite a bit of buying pressure. In fact, we had enough buying pressure to turn things back around and form a nice-looking candle that is shaped basically like a hammer. Because of this, it looks like we might get a little bit of a bounce, but I would not be willing to buy this market. After all, this could be a bit of a “dead cat bounce”, and I see quite a bit of noise above going all the way to the $96.00 level. It would not be into we broke above the $97.00 level that I would even consider buying this market, so therefore I am sitting on the sidelines presently.
If you look at all of the currency pairs that are related to crude oil, you will see that the US dollar is crushing most of them. Because of this, I believe that we will continue to see oil looking rather soft, and this of course will include this grade as well.
Patiently waiting for my opportunity.
I am patiently waiting for my opportunity to start selling this market. Somewhere between the $93.00 level and the $96.00 level, I believe that there will be enough resistance to form a candle that will make me sell this market. In the meantime, I simply have to wait to see that happen. I will use the daily charts in order to get involved, and I will aim for the $90.00 level. I don’t necessarily expect the market to break down much below there, but you never know.
The one thing I am clear on is that buying this market anywhere in this area is basically risky at best, and more than likely just going to be foolish to say the least. That being said, I’m going to step back and let the market give me a better opportunity to profit off of the weakness in this marketplace.
