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.
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.