The WTI Crude Oil markets fell again during the session on Thursday, as we continue to plow lower. You can see that we have a significant amount of bearishness in the market all of a sudden, and the fact that we are testing the $97 level of course does concern me as I see it a major support level. With that, I believe that the announcement today, the US Nonfarm Payroll number, will be greatly influenced when this marketplace. After all, the correlation is typically the more jobs, the more petroleum demand.

However, with this kind of bearishness I would be more apt to sell this market on a bounce that show signs of resistance somewhere near the $99.50 region. I think that any initial reaction in this market will probably be short-lived, because there are obviously a lot of issues with the WTI contract at the moment.

Looking at this market, I see nothing but trouble.

But in this market, I see nothing but trouble at the moment, as there is a bit of a freight train effect going on. Simply put, I don’t want to catch any falling knives, so I’m going to wait for a supportive candle on at least the daily timeframe to even think about going long at this point. Yes, I see that we are getting close to significant support, but the fact that we close at the very bottom of the candle for the day on Thursday suggests to me that bearishness should continue overall.

That being said, we are heading into August, a traditionally slow time of the markets anyway. With that being the case, the bounce could be very short-lived if we get it. It is not until we get above the $100 level that I would even consider going long, and at that point in time I think it would still be a fairly bumpy ride higher. Going forward, I think that this market will continue to be bearish for at least the next month, and that rally should simply provide selling opportunities.

Crude Oil 8114

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Investing

    Latin America’s Economic Forecast

    After a ten-year run, the economies of Latin America are in a decline. For sustainable, long-term growth, the region needs structural reforms.
  3. Professionals

    Illiquid Real Estate: Correlation Pros and Cons

    Stock and bond markets are moving more closely in tandem with each other. Is illiquid real estate the vaccine for this correlation?
  4. Professionals

    How to Manage Fixed Income as Interest Rates Rise

    A look at how to manage fixed income amid the specter of rising rates, correlation to stocks, client expectations and more.
  5. Mutual Funds & ETFs

    Passively Managed Vs. Actively Managed Mutual Funds: Which is Better?

    Learn about the differences between actively and passively managed mutual funds, and for which types of investors each management style is best suited.
  6. Economics

    Why the Euro Failed to Become the World's Reserve Currency

    Examine the current state of the U.S. dollar as the world's reserve currency; learn the major reasons why the euro has failed to replace it in that capacity.
  7. Mutual Funds & ETFs

    4 Mutual Funds Warren Buffet Would Buy

    Learn about four mutual funds Warren Buffett would invest and recommend to his trustee, and discover detailed analysis of these mutual funds.
  8. Investing

    The Top Businesses Nurtured By Y Combinator

    We look at the top startups that were incubated at Y Combinator, one of the world's most popular business incubator firms.
  9. Professionals

    Want to Start Up an RIA? Expect These Hurdles

    RIAs looking to strike out on their own need to overcome and plan for a number of hurdles.
  10. Investing Basics

    Are ETFs the Best Way to Diversify with Bonds?

    Are bonds safe or risky right now? It depends on the type of bond and how you invest in them.
  1. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  2. Can mutual funds only hold stocks?

    There are some types of mutual funds, called stock funds or equity funds, which hold only stocks. However, there are a number ... Read Full Answer >>
  3. How do mutual funds compound interest?

    The magic of compound interest can be summed up as the concept of interest making interest. On the other hand, simple interest ... Read Full Answer >>
  4. Who decides to print money in Russia?

    The Central Bank of the Russian Federation (CBRF), like its peers in most countries, is the governmental entity responsible ... Read Full Answer >>
  5. Does working capital include prepaid expenses?

    The calculation for working capital includes any prepaid expenses that are due within one year, since such prepaid expenses ... Read Full Answer >>
  6. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!