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.
