The WTI Crude Oil markets rose during the course of the session on Wednesday, as the market got a bit oversold. On top of that, the $47 level below has been supportive in the past, so quite frankly I feel it’s only a matter of time before this bounce happened. Now that it has, with this I believe that it’s only a matter of time before this market sells off again. The $50 level above is a large, round, psychologically significant number, as well as previous support in this marketplace.
The market will more than likely find sellers there based upon the fact that it is a large round number, but ultimately there are a lot of sellers out there still. Quite frankly, there is more than enough supply of crude oil at the moment, and with the Federal Reserve looking to raise interest rates, that should bring up the value of the US dollar. With this, it will work against the value of the commodity markets in general, and of course crude oil won’t be any different.
China slowdown
The Chinese economy course has slowed down recently, but what’s more important is that it means that there are going to be problems as far as demand is concerned when it comes to crude oil. With this, I am a seller on a resistant candle, and would look to short-term charts in order to do this type of trade. I have no interest in buying, because quite frankly I see a massive amount of noise between here and the $54 level, so quite frankly I don’t have any faith in a move higher.
I think that the market is probably going to head down to the $45 level, and then the $42 level again as that was the massive low in the middle of the month of March. There is no interest on my part in trying to fight what is obviously a very negative trend.
