Crude Oil Price - 17 September 2014

The WTI Crude Oil markets rose fairly significantly during the session on Tuesday, breaking the top of the hammer from the Monday session, as well as the $93.00 level, an area that looks to be rather resistive. That being the case, the market looks as if it’s ready to go back towards the $96.00 level, an area that has been more resistant. Even though we got a fairly significantly bullish candle for the day on Tuesday, I am hesitant to start buying the WTI contract now just simply because we are most certainly in a nasty downtrend, and I see a lot of noise all the way to the $99.00 level.

Any resistive candle between here and there is a selling opportunity as far as I can see, and that’s exactly how I’m going to approach this market, from the sell side only at the moment. I think that it’s very likely that the downtrend continues, and as a result I think this bounce will simply be something that was needed, and nothing more.

Demand just isn’t there

Demand just as an out there right now, economic conditions are a bit soft, and as a result it’s difficult to imagine this market going to much higher, although in all honesty we are been oversold. By simply waiting until we get the bounce, I feel that it’s going to go much easier to sell at higher levels that would be to buy down here. In fact, I believe that being patient is the only way to make money in this market right now, simply because you have to follow the overall trend when it’s this well-established.

Ultimately though, if we do break above the $100.00 level, the trend will have changed yet again, and then we would head to the $107.00 level. The market simply shouldn’t see much in the way of demand coming anytime soon, so therefore I am hesitant to be bullish with any significant amount of money. If I had to start buying this contract, I would probably start out with binary options.

Crude oil 91714

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.