Technical analysis for crude oil – 01 May 2013 — the WTI crude market passed by a negative session on Tuesday, as it dropped below the level of $ 95.00 directly. Recently I was expecting that we may enter into in the previous consolidation area, and we could see a bit of volatility movement between the level of $ 92.00 on the bottom and the previous level of $95.00 which was the previous top, In that case, we look at the kind of market speculators in the short term, and as a result, you have to be smart and available to monitor the news in this kind of environment.
In that case, we can say that you can not trade in this market, and you had to trade fast. In that case, you have to keep the stop-loss points in a narrow area, and be privy to the fact that the hack below the $ 92.00 level will actually lead to a strong descending move on the road, and at that point, you simply have to take a short position only.
On the other hand, if we were able to hack above the $ 95.00 level, we will have to say that there is a maximum upward position is about to occur, and that you have to take a long position only. And this will most probably agree with the type of the decline in the value of the U.S. dollar, which in fact something that we has started, we are starting to see now. But i think to be clear we will watch a decline in Crude Oil.
Supply and demand
Frankly, the equation of supply and demand in this market is good. Frankly, no much demand on Oil in many countries. In that case, it seems that this plan counter to the dollar more than anything else. But in the end, does not really matter why prices are rising, it is important that they go up. I will monitor that range that I mentioned at the top in order to develop long trades. CFD suggest that perhaps could be the appropriate way.