The WTI Crude Oil markets had a horrible session on Friday, as we crashed below the $101.00 level. However, we are just above the $100 level so there is a little bit of confusion in this general vicinity. On top of that though, I have drawn an uptrend line on the chart that has obviously been broken as well. So with that being the case, it appears that the sellers are starting to take over again, but it is not until we break down below the $100 level that I would consider selling this marketplace at that point in time.
However, there is a significant amount of support all the way down to the $97 level as well, so quite frankly this is one of those markets that can cause a lot of problems, where this point time I suspect that the market is probably best traded in the options pits, as it at least can mitigate some of the overall risk.
Lots of noise, headlines throwing markets around.
The length of the candle shows just how bearish the session was. The fact that we close at the very bottom of a long candle tells me that the market is full of sellers at the moment, and that we will more than likely continue the bearish pressure going forward. However, there are so many areas between here and $97 that could cause problems that it’s very difficult for me to get overly bearish as there are so many different ways to read the charts at the moment that the market is probably one that’s best left alone.
On the other hand though, if we get above the $103 handle, I feel that this market would then be a bullish market again that I can continue to start buying. On pullbacks at that point in time, I believe that short-term charts will be the way into the marketplace, as we would march back towards the $107.50 level, which of course was the most recent high. However, this looks like a market is going to be very easy to lose money in over the course of the next several sessions.