The WTI Crude Oil markets found support at the $44 level again during the course of the session on Thursday, as we continue to consolidate between the $44 level on the bottom, and the $46 level on the top. The pullback actually fell all the way down towards the $43 level, which I think is the bottom of the “support zone” that is currently keeping the market higher.
I recognize that we have been in a very negative downtrend for some time, but I believe that the recent and massive bounce that we have seen from the $38 level suggests that we may be trying to change the trend overall. After all, that type of impulsive move doesn’t happen every day. Since then, we have seen the market pullback but ultimately I feel that this type of volatility is common when it comes to the idea of a trend change. After all, there are a lot of sellers above that have to be taken out of the market. With this, it takes a lot of work to go higher. Besides, you have to keep in mind that in the meantime it’s difficult to find people willing to buy at lofty levels.
However, the market looks comfortable
The market looks very comfortable in this area, after rallying $10. That’s a big deal to happen in 3 days, and with that I feel that the market sitting in this general vicinity after that move and not selling off is a sign that people are willing to hold onto their long-term positions. In fact, I began buying a while ago, and now am hanging onto ETFs that are based upon oil. Hanging onto a leveraged position of course is a completely different level, and this type of volatility keeps me from doing so. With this, I am sticking to less dangerous ways to play with what I believe could be a move much higher. Pullbacks continue to offer buying opportunities for those of you who are willing to step into the marketplace, be it via CFDs, ETFs, or even futures markets.
