Crude Oil Price- April 28, 2014

Christopher Lewis

During the Friday session, the WTI Crude Oil markets fell rather hard. The candle of course closed just above the $100.50 level, but more importantly close towards the very bottom of the range. This almost always means continuation of the move, so therefore I would expect this market to sell off a bit more today. However, we aren’t that far from the large, round, psychologically significant barrier of $100, so I would be a bit hesitant to sell in this general vicinity because of that. On top of that, I can see several little micro support areas that could cause the market to bounce between here and the $97 level.

In fact, it is not until we get below the $97 level that selling is even possible as far as I can tell. It’s not to say that a move below there would be easy either, it’s just that it would clear a lot of support. With that, I am essentially looking for buying opportunities only in this market.

There is the potential of a double top.

Unfortunately, there is the potential that we’ve seen a double top at the $105 level. Because of that, you do have to be on your toes but I think ultimately this market will go higher. Really will we need to see this point in time is some type a supportive candle in order to start going long, and that point in time I would not hesitate to do so as the move higher has been so strong. The real question then becomes whether or not we are consolidating between $100 and $105, or if we’re still we trying to build up enough momentum to breakout to the upside.

If we do breakout above the $105 level, I believe that the market then heads to the $110 level without too many issues. On the longer-term charts, it is a major area, and over time the markets do tend to be attracted to these levels. Again, at this point time I have absolutely no interest in selling this market until we get below the $97 handle.

Crude Oil 42814

About the Author
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.

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