The WTI Crude Oil markets fell initially during the session on Monday, but found support just below the $93.00 level in order to turn things back around and go much higher. We close above the $94.00 level, and as a result it looks as if there is still pretty significant support and bullish momentum. However, the $95.00 level above will be resistive, as it extends all the way to the $96.00 level. Because of that, I have no interest whatsoever in going long of this market, but I think that a resistant candle in that general vicinity would be an excellent selling opportunity as we are both in a downtrend, and are bit overextended at the moment.
The market looks as if it’s going to continue to consolidate between the $90.00 level, and the $96.00 level. With that, I think that there will be plenty of short-term trading opportunities, but it won’t be very easy to play this market or anything more than a short-term gain or loss. Ultimately, I think that we will probably sit here for a while.
Downtrend.
We are most certainly in a downtrend at this point time, so I am more comfortable selling than buying. But having said that, there are short-term buying opportunities time to time. You’ll notice that the highs here recently have got a little bit lower each time, so I think that the sellers will continue to have the upper hand overall, and with that I believe that $90 will be tested given enough time.
If we do break down below the $90 level, I think will go down to the $85 level given enough time. On the other hand, if we do manage to break above the $96 level, we will try to get to the $99 level next. Above there is the psychologically significant barrier of $100, which I would find a move above there as a trend changing event as it shows so much in the way of bullish momentum after falling so rapidly.
