The WTI Crude Oil market continues to grind away as the Monday session offered a bit of support, but it is still within the realm of consolidation. Because of this, it is very likely that we will continue to struggle to find any meaningful direction in the short-term, as the market simply doesn’t have enough in the way of conviction one way or the other. That’s not surprising though, because when you look at the chart you can see that we have sold off drastically. Because of that, I feel that this market should continue to be one that short-term traders are attracted to, but those who are more along the lines of swing traders for longer-term traders will avoid like the plague.
The candle shave for the Monday session of course is a hammer, but at the end of the day we formed a shooting star on Friday as well, so that just shows how conflicted the market is at the moment. Given enough time, we will break out one direction or the other and although we are in a significant downtrend, I think that it could take a while to break down if we do, simply because it is the $80.00 level below that is causing support. After all, it is about as a big and round number as you can have, and with that we would more than likely see quite a bit of buying pressure here.
Still very bearish though.
The matter what happens from here, I am still very bearish at this point. In fact, I really don’t think that we break out to the upside until we get above the $86.00 level, something that is going to be a bit of a struggle. If we do get above there, the market could then head to the $90 level, and I would in fact be willing to buy albeit on a short-term perspective more than anything else.
More than likely though, this market will probably offer selling opportunities on resistive candles going forward. If I have to play this market from a short-term perspective, I will be selling again and again in this fairly tight range waiting for some type of continuation of the overall trend.
