The WTI Crude Oil market continues to meander right around the $102 level, and finding the $101 level be supportive still. The area has been rather resilient, and as a result I believe that the markets will continue to find a reason to bounce from this area. Within this chart, I can see that we could very easily find trading range is between the $101 level on the downside, and the $104 level on the upside. That being the case, I feel that this market will probably be relatively tight in the short term, but we do have some clear areas that could serve as launching prices for the next move.
While I find it very difficult to short this market, I do recognize that a break below the $99 level would in fact show a real change in the attitude of this market, which of course would have me thinking that the sellers were starting to take over.
$104 remains crucial
I believe that if we can get above the $104 level, especially on a daily close, we could see a move up to the $108 level without too many issues. After all, that was a previous consolidation area, and as you know, markets do tend to go back and forth between these areas from time to time. The real question of course is whether or not we can get above the $108 level, which I feel is going to be significant resistance. In fact, it looks a lot like a resistance zone it to me that extends all the way to the $110 level. Because of this, I think we are essentially stuck in this overall trading range.
That being said, this can produce a nice range trading environment that could be quite lucrative if you are patient enough. After all, you can see that we have been more or less in this range sense late June, and that does produce a very profitable environment for those who can play the outer edges of it. Going forward, until we break well above $110, or below $99, I don't see any other way to play this market.
