The WTI Crude Oil markets fell during the session on Monday, but remain elevated enough to stay in the consolidation area that we've seen recently. The $102 level has been supportive, and I still believe that will be the case going forward. That being the case at this point time I believe that this market is ready to have a little bit of a bounce, and that is somewhat of a "low risk" type of trade. Going forward, I feel that this market will more than likely stay between the $102 level, and the $108 level for the most part.
On top of that, there is a significant amount resistance all the way to the $110 level, where a move above that level would be a massive breakout. A move above there has is looking for much higher levels, probably the $115 handle, if not the $120 handle.
Consolidation is the key
I believe the consolidation will be the key to this market. Because of this you will have to start buying in this general vicinity and aim for about six dollars’ worth of movement. With that being the case, I feel that the market is a good short-term buy, and selling is going to be almost impossible here. Certainly, if we managed to break below the $102 level, we more than likely will find ourselves testing the $100 level. At that point time though, I would expect quite a bit of support.
Ultimately, the value the US dollar will have a great effect on this market and because of this I have some hope for the buyers. In the end though, and markets will do what they do, which of course is frustrate as many people as possible. Eventually we will break out of this market, but in the meantime I feel that this market is a decent range bound trade for those of you who prefer hourly chart or the like. In fact, it has been that way since the beginning of summer and a lot of people made a lot of money trading that exact way.
