By: DailyForex.com
The WTI Crude Oil market rose during the session on Thursday, breaking above the $95.00 level during the session, but ultimately pullback and closed at the $94.65 level for the day. With the nonfarm payroll number coming out later today, it's likely that we will see quite a bit of volatility in this marketplace. I still though, completely believe that we are stuck in a range at this moment in time, but would more than likely have a bit of a downside bias if anything at all. $92.00 level looks like significant support, with the $97.00 level looking as resistance.
The market is roughly as "fair value", so this is why I think that the area has been so sticky lately. I think that the summer range is pretty much set at this point in time, and as a result this will be a short-term trade at best. The sideways action of this market should continue, but again like I said I think there is a bit of a downward bias mainly because of slowing down economic activity around the world.
Beware of long-term trades
This market has proven to be far too choppy to hold onto any trade for more than basically the day. That being said, I believe that the one hour chart is probably about where you need to be looking, and at that point time you simply can sell at $97.00, and by at these $92.00 area. Between here and there, it's really not advisable to do much as there are so many minor support and resistance levels that could throw this market around.
Don't underestimate the effect of the nonfarm payroll number either. This number gives hints as to whether or not there will be more or less energy consumed in the United States, which of course is a major market for crude oil on the whole. That being the case, staying out of the market for the Friday session is probably the best route to go as we will more than likely have all kinds of repricing of not only risk, but growth as well.