The WTI Crude Oil markets had a positive session on Tuesday, as we took back most of the losses for the session on Monday. Because of this, looks like the market is going to continue to consolidate between the $97 level on the bottom, and the $100 level above. Because of this, I feel that this market is probably going to continue to be one that short-term traders are attracted to. However, is going to be difficult to place a longer-term trade until we get well above the $100 level, which would take a little bit of work from here. Quite frankly, it would not surprise me at all to see this market go sideways for some time, simply because there’s so many headlines out there that could be pushing it around.
However, all that being said it appears that we have basically pullback 50% of the move higher, so I do have a bit of faith going forward that we will eventually see higher prices. The $103 level will continue to be the first target, with the $105 level above there been a target as well. If we can get above the $105 level, we should head to the $110 level.
Too much noise below
I believe that there is far too much noise below to even consider selling, just simply because it will be far too difficult to hang onto that choppy type of position. Don’t get me wrong, I think there is going to be a lot of noise and choppiness on the way it up as well, but at least it looks to be a little bit more of a clear path in relation.
All things being equal, I would place a smaller position to begin with though, discipline because it’s going to be difficult to hang onto massive swings in the account balance as a larger position would certainly cause to happen. Again, selling is an even possible as it just simply would be far too much in the way of trouble, not to mention a nerve-racking type of position.
