The WTI Crude Oil market has been very bearish for quite some time now. After all, you can see that the market fell from the $90 level all the way down to the $80 level in a flash. That being the case, the market looks as if it is due for some type of bounce, or at least a slowing down of the bearishness. However, I still believe that this market has some downside to it. In the meantime, the market looks as if it is ready to bounce a bit but I believe that it is only going offer a nice selling opportunity. Yes, I recognize that the hammer that informed upon the close of the Monday session signals that the market is probably ready to bounce from here but I’m not willing to step in front of this marketplace. After all, “catching a falling knife” is in exactly the way I like to trade.
Patience will continue to pay in this market
I believe that simply waiting for the market to bounce in order to start selling again is the way to go. I believe that the $84 level should continue to offer resistance, so I believe that a resistant candle in that area is probably much more trustworthy than a hammer down here. I believe that the market will more than likely bounce around between the $80 level on the bottom, and the $86 level on the top. So, when I am essentially doing is selling this market every time it rallies on short-term charts. Because of that, the market looks as if it is one that can offer many short-term trading opportunities in the meantime.
I do recognize that eventually we need to either breakout or breakdown. Even if we break out to the upside, I believe that there will be plenty of selling opportunities before that happens. In other words, you are simply playing the odds and collecting several wins before eventually taking a loss. However, I believe it is much more likely that we will eventually break down below the $80 level, and head to the $75 level which could boost profits if you continue to sell over and over.
