Crude Oil Price- Oct. 17, 2013

The WTI Crude Oil markets rose during the session on Wednesday, as the $101 level has offered enough support yet again. This area is looking more and more interesting to me, and I believe that short-term traders will more than likely take advantage of this area as its strength has been proven more than once. This market looks like it's going to be a nice short-term range trading opportunity between $101 and $104 for the time being, but ultimately I do believe that the $104 level gets broken to the upside.

Once that happens, I believe that the markets will continue all the way up to $108 first, and then possibly $110 before the move is said and done. That would keep us within the recent consolidation area that we have been trading in, and as a result I think this market could be somewhat range bound over the longer term as well. After all, we're still wondering what the Federal Reserve will be able to do.

Speaking of the Federal Reserve…..

Speaking of the Federal Reserve, we have to wonder whether or not they will be able to taper off anytime soon. Quite personally, I'm starting to think that it's going to be well into the year 2014 before they can even attempt to do something like that. However, a lot of the market participants will wait until we can get the nonfarm payroll numbers on the United States in order to make that decision again.

With the U.S. Senate finally coming to some type of agreement for the budget negotiations, the US government opens back up and we should get those nonfarm payroll numbers pretty quick. That being the case, we can expect a little bit more clarity, but don't expect miracles at this point. That could be the reason for the surge higher during the session on Wednesday, but in the end I think are simply bouncing around in a $3.00 range, and we have to trade this market as such. As far as selling is concerned, I see support all the way down to $99, so even a break below the $101 level isn't enough to get me too excited.

Crude oil 101713

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.