The WTI Crude Oil markets fell during the session on Wednesday, as we continue to bounce around the $60 handle in general. To be honest though, if you are a short-term trader you must absolutely love this market at the moment. We can’t go anywhere of any significant value, without having people trying to reverse the trend. We are in an excellent consolidation area that is well defined, which is exactly what short-term traders love to see. Those of us who use the daily charts however will find this to be a bit difficult to deal with.
I think that short-term traders will continue to buy this contract every time it drops, and I see a significant amount of support all the way down to the $57 level. I think that level is also important because that’s where we broke out of in order to clear the previous resistance. Don’t let the fact that we’ve gone sideways for some time now fool you: we definitely broke out and it appears that we are trying to form some type of base.
Summertime blues
I absolutely hate trading in the summertime when it comes to some markets. This is a market that Lisa go sideways so in the summertime a lot of people will avoid it. Quite frankly though, if you are short-term nature, this could be an excellent opportunity. I wouldn’t think that trading futures contracts would be very smart, but you could use CFDs or options. That way at least you can limit your exposure. As far as I’m concerned, the soundest strategy would to be going long every time we dipped. This is because we are broken out from the previous resistance, and that tells me that more than likely consolidation will mean continuation. I fully anticipate seeing this market break out in the late part of the summer, perhaps the early part of the fall. With that, I am bullish but I recognize for the next month or two it might be relatively tight trading.
