Technical analysis for crude oil – 05 April 2013–WTI crude market made a downturn during Tuesday’s session as inventory figures in the United States remained high. There are also concerns about the overall health of the global economy, and that seems to be declined in many different places. By looking on the market, we could see an large Hummer shape could be formed with trying to hack down to below $ 92.00 level.
With this, you might think that the level of $ 98.00 a bottom of the range which will deliberate during the spring and possibly the summer, and $ 98.00 pose significant resistance area will be top of that region. For this reason, I think we could get something from the bounce here, but it should be provide an opportunity to sale.
Already showed the last two days a lot of weakness in this market. For this reason, I tend more to sell in this market than buying it. For this reason I will be patient and allow the occurrence of any rebound, and then I’ll sell the first signs of resistance. The fact that hummer shape had been formed on Monday and Tuesday were impenetrable, indicating the extent of the weakness which began to dominate the market. However, I am aware of the fact that there is a lot of support at the bottom, and it seems the real collapse is possible at this point.
Market and how it looks like we’ll be seeing a lot of short-term intermittent. For this reason, I will not keep a trades for a period longer than necessary, and probably that I buy or sell based on the shorter time frames and exit the same way. However, the market was sold somewhat excessively, and for this reason, months more comfortable in selling at the top.
It should be noted that the numbers of the salaries of the non-agricultural sector could move this market as well, where it appears that the presence of more workers in the market could mean more demand for energy.