The WTI Crude Oil market rose during the course of the day on Wednesday, and even challenged $96.00 handle. It’s above there that we would see a significant amount of buying pressure reenter the market, and perhaps try this market as high as $98.50. In the meantime though, I think that the market will more than likely selloff in this general vicinity, and for that matter we did see a bit of selling pressure towards the end of the day on Wednesday. In other words, this may have already started.
The oil inventories numbers come out during the session today, and of course will drive what happens in this market. But even more importantly is the fact that the nonfarm payroll numbers come out on Friday, and that of course can drive perceived demand for petroleum in the United States, which of course is the largest customer.
Downtrend continues, but $90 looms large.
The downtrend does continue overall, but even if we break down below the $92.50 level, there’s a good chance that the $90 level will hold as support. That being the case, I believe that the downside only has about five dollars left in it. On the other hand, if we did break to the upside, although it would be a rather choppy affair, I believe that this market could go much higher given enough momentum.
In the meantime though, I do think that we will more than likely try to break down and head to the $90 level, as it is such a massive and important level on the longer-term charts. Between now nonfarm payroll numbers though, I think this market simply dressed a little bit lower, and therefore can be shorted on short-term charts, or perhaps binary options if you have the ability to do so. It’s difficult to imagine that the market would suddenly surge higher or lower between now and that significant employment number. Ultimately, the market should continue to be very volatile regardless of what we see, but at this point in time, it’s very difficult to go long and I do think that the next few sessions will be negative.
