By: DailyForex.com

The WTI Crude Oil market did very little during the session on Wednesday as we continue to hover around the $93.50 level. With that, it’s very difficult to get overly excited about trading this market right now, as the markets are simply far too tight and choppy to be safe at this point. The last week of August is probably one of the hardest weeks to trade commodities, simply because larger firms have their traders on holiday at this point, and it’s not until we get into the month of September that the volume picks back up. With that, I have a different way of trading this type of market.

With that being the case, I have been playing the binary options market more than anything else when it comes to the crude oil markets. The $94.50 level above continues to be resistive, and as a result I have been selling calls above that level, and selling puts below the $92.50 level, and simply collecting the little bit of premium that being offered.

I would highly recommend staying out of the futures markets.

The futures markets right now are going to be simply too difficult to deal with, considering how expensive this contract can be. With that, I prefer to trade the aforementioned binary options, or perhaps the CFD markets if you have that ability. Quite frankly, I expect the next couple of sessions to be fairly quiet, as the market simply appears to be comfortable in this particular range. I do not see anything that’s going to break the market out, and quite frankly even with the oil inventory numbers coming out during the session on Wednesday, the volatility was almost nonexistent.

I think we will get our real move around 10 September. Between now and then, the market could be very difficult to deal with, so therefore I simply collect premium. I can think of no other way to trade this market currently, and quite frankly it’s been very good to me over the last several sessions. It is not until I see an impulsive candle that a change my strategy.

Crude Oil 82814


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