The WTI Crude market tried to rally during the session on Monday, and while he did managed to break above the $97.00 level at one point in time, and you can see that the market got pushed back down. As a result, this candle that formed for the Monday session is indeed a shooting star, and does look very bullish at this point in time.
Looking at this chart, I believe that a break of the bottom of the candle for the Monday session would indeed send this market lower. It would not only break the bottom of the shooting star, but would also break the bottom of the $95.00 level. I believe that if we get below this level, we could see the market go as low as $92.50 in the short term.
Range bound conditions to continue
I believe that the overall range bound condition in this marketplace will continue. The fact that the shooting star formed at the top of the overall range certainly doesn't hurt the idea that this market could fall from this area either. The market has been a bit overextended lately, and as a result I do think that this pullback is somewhat muted. I also think that there is a significant amount resistance above the $98.00 level, so even if we get continued bullishness, I don't think it's going to go much farther.
I don't necessarily think that this market meltdown either. I believe that the $90.00 level is roughly about as Lois this market can go right now, and as a result we should get a nice little range for shorter- term traders to profit off of. Obviously a longer-term trader can profit as well, but we need to be a little bit more resilient and show more fortitude as the choppiness will continue. Nonetheless, I do think that there are nice trading opportunities in this marketplace, and I simply going to wait to see if I'm selling below $95.00, or if I'm selling some type of failure closer to the $98.00 level. Either way, buying is off- limits at this point, as we are far too high in the overall trading range at the moment.