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.