The WTI Crude Oil market try to rally slightly during the session but as you can see we remain very weak in this market. With that, I believe that the market should continue to fall, as there simply is nothing to hold the market off. We should drop down to the $90.00 level given enough time, but I also see the potential for the $92.00 level to offer a bit of support also. With that, I think that the move lower it’s probably going to be more of the choppy type, and as a result it’s very likely that this will be one of this trade you can go back and forth to again and again.

I really don’t see much of a chance of buying this market, at least not until we get above the $97.00 level, which would be a major shift in the momentum of the marketplace. Getting above there, I think the market could then go to the $100 level, which is an area that has caused both support and resistance in the marketplace for some time, and should offer quite a bit of selling pressure.

The trend is too strong.

This trend is just simply too strong to try to fight, and this is a great way to lose money by betting against it. This is akin to “catching a falling knife”, which of course is one of the dumbest things you can do is a trader. We would need to see a significantly supportive longer-term candle in order to make it so that I’m comfortable buying. With that, I am essentially “sell only” at this point in time, and will use short-term candles as trading signals since I believe the market will not only be bearish, but be choppy.

When we get to the $90.00 level, I think at that point in time we could see a significant amount of support that could potentially turn the market around. If we somehow get below that level, the absolute floor in this market could collapse and we could go much lower.

Crude Oil 82114

Related Articles
  1. Taxes

    5 Tax Moves To Make Before Year End

    Taxes aren't avoidable, but you shouldn't pay more than your fair share. Here are five moves you can make at year's end to lower your tax bill.
  2. Active Trading

    FYI On ROI: A Guide To Calculating Return On Investment

    Return on investment is a simple equation that can give you an edge when fine-tuning your portfolio - here's how to use it.
  3. Investing

    How to Take Maternity Leave as a Freelancer

    Freelancers are not covered under the Family and Medical Leave Act, but maternity leave is still doable with these tips.
  4. Retirement

    Roth 401(k), 403(b): Which Is Right for You?

    Learn how to decide between a traditional or Roth version of the 401(k), 403(b) or 457(b) retirement plans to help you build your nest egg.
  5. Mutual Funds & ETFs

    Why ETFs Are a Smart Investment Choice for Millennials

    Exchange-traded funds offer an investment alternative to cost-conscious millennials who want to diversify their portfolios with less risk.
  6. Markets

    What Is the Labor Market Conditions Index?

    The Labor Market Conditions Index is a new Fed indicator to track labor statistics. How useful is it?
  7. Investing

    Asset Manager Ethics: Acting With Competence and Diligence

    Managers must make investment decisions based on their personal investment process, which in turn should be based on solid research and due diligence.
  8. Investing

    Asset Manager Ethics: Acting In the Benefit of Clients

    Investment managers should always act to benefit the client. Learn what actions managers should take on a client's behalf.
  9. Investing Basics

    Calculating The Present And Future Value Of Annuities

    Here's everything you need to account for when calculating the present and future value of annuities.
  10. Economics

    The World's Top 10 Economies

    A look at the top ten economies in the world.
  1. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  2. Does Netspend accept wire transfers?

    NetSpend accepts some types of wire transfers to add money to the prepaid debit cards it issues to its customers. There are ... Read Full Answer >>
  3. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  4. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>
  5. Do FHA loans require escrow accounts?

    Federal Housing Administration (FHA) loans require escrow accounts for property taxes, homeowners insurance and mortgage ... Read Full Answer >>
  6. Is Greece a developed country?

    Greece is a developed country by most meaningful metrics. However, its financial struggles have been well documented in the ... Read Full Answer >>

You May Also Like

Trading Center