The WTI Crude Oil markets fell during the course of the day on Monday, but for the second session on a road found enough support at the $101 level to turn things back around and form a hammer. With that, I feel that this market is eventually going to break to the upside, which goes with my longer-term bias anyway. A break above the top of the hammer, which is conveniently located at roughly the $102 level, I feel that this market will then head to the $104.50 level, and then possibly $105, although I see it as being a little bit more resistant. Above there, the market then heads to the $107.50 resistance area
I think of this market will remain bullish overall, and if you look at the charts from the longer-term perspective, you can see that there is most certainly an upward bias, but there has been a lot of choppiness on the way. I think that the market will continue to go higher over the longer term so therefore I don’t really have any plans on selling. However, I would recognize that a break below the $99 level is in fact bearish enough to perhaps break the overall bullish bias, and therefore it would of course change my perception.
The summer months tend to be fairly slow for the trading markets in general, and now that we are heading into August I would expect that to definitely be the case. With that, I feel that any trade is probably going to take some serious time, so you’re going to have to be patient regardless. However, I feel that this will also allow traders who normally don’t like too much in the way of extreme volatility to play the market finally, as a lot of the moves will essentially be in “slow motion.” That being the case, playing the CFD market might be the way to go if you have that ability, simply because you can keep the position somewhat small and avoided tying up too much of your trading capital. Alternately, the options market might be the way to go.