By: DailyForex.com

The WTI Crude Oil market had a fairly positive session during the day on Thursday as you can see, using the $92.50 level as support. The candle is a bit of a hammer, and it does suggest a perhaps a bounce is imminent. With that, I see this market heading to perhaps as high as $96.50, an area that has been rather supportive in the past, so it should be resistive in the future. On top of that, you can see that the candle from the Tuesday session was a massive shooting star which saw the market go as high as $97.00, and then turned back around and form that candle. Because of this, I feel that the market should continue to see pressure in that area.

That being the case, the market could break down and go below the $92.50 level as well, but the $92.00 level could be supportive as well. If we got down below there, the $90.00 level should be a massive support level, and as a result I feel that the market will more than likely bring and quite a bit of buyers at that area. On top of that, which be honest, this market is oversold by just about any metric you can use.

Short-term opportunities.

I believe that there will be short-term opportunities in both directions, and this will more or less be a day trader’s type of market. I also think that the options market might be the way to go, simply because it’s very easy to define your risk. Remember, the futures market is a very expensive one, so unless you have a large account I would advocate using the options market, or the CFD markets if possible. Quite frankly, the volatility will probably pick up from here, and the market will probably be choppy and very difficult to hang onto. Ultimately though, I do believe that the buyers are going to step in and reassert their control given enough time as the larger numbers and larger trading firms get involved in the markets as the holiday season ends.

Crude Oil 82214

Related Articles
  1. Mutual Funds & ETFs

    The 4 Best T. Rowe Price Funds for Growth Investors in 2016 (TROW)

    Discover the four best mutual funds administered and managed by T. Rowe Price that specialize in investing in stocks of growth companies.
  2. Mutual Funds & ETFs

    The 3 Best T. Rowe Price Funds for Value Investors in 2016

    Read analyses of the top three T. Rowe Price value funds open to new investors, and learn about their investment objectives and historical performances.
  3. Tax Strategy

    Profit from Art with a Charitable Remainder Trust

    With a CRUT, art collectors can avoid capital gains taxes on the sale of art– while also leaving their favorite charity a legacy.
  4. Active Trading Fundamentals

    4 Stocks With Bullish Head and Shoulders Patterns for 2016 (PG, ETR)

    Discover analyses of the top four stocks with bullish head and shoulders patterns forming in 2016, and learn the prices at which they should be considered.
  5. Economics

    How Negative Interest Rates Work

    Policymakers in Europe go for the unconventional: negative interest. What could happen?
  6. Budgeting

    The Honest Company Bundles Review: Are They Worth It?

    Learn more about The Honest Company and its bundle subscription services, which deliver discounted diapers, formula and other baby products to your doorstep.
  7. Fundamental Analysis

    Will Airlines Keep Flying High in 2016?

    Learn why the airline industry has such a unique set of variable and fixed costs that makes it very difficult to forecast its performance each year.
  8. Investing News

    These Free Super Bowl Ads Happened (BUD)

    The average 30-second Super Bowl cost marketers $5 million in 2016. But these companies benefited from free advertising during and after the game.
  9. Mutual Funds & ETFs

    Top 3 Lazard Funds for Retirement Diversification in 2016

    Learn about Lazard Asset Management, its long history of strong performance and the top three Lazard funds to consider for retirement diversification.
  10. Investing

    Harry Potter and the Unnecessary 8th Book

    A "special rehearsal edition" of the recent Harry Potter play--to be released July 31 as the eighth book in the series--will boost the franchise's fortunes, which have been sagging lately.
RELATED FAQS
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  3. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  4. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center