Technical analysis for crude oil – 14 May 2013

Technical analysis for crude oil -14 June 2013

WTI market fell during the session on Monday, closing below the $ 95.00 handle directly. It seems this market is like trying to find the kind of support at $ 94.00 area, and as a result, I think we will see the scope of deliberative narrow somewhat over the coming sessions. In the long term, it is possible that there will be a different story, but it is supposed to see some kind of consolidation in this region in general.

In the future, I think that this market will already start to fall again, where we are closer to the top of what I call the scope of the yea,r more than the bottom of any trading channel. However, it will be a difficult market to take a short position and stability as I was expecting a lot of noise on the way to the $ 90.00 level. Also, there is always the possibility that something of news related to the Middle East could scare the markets during the summer.

Currently, there is too much oil in the market. Simply put, the supply more than demand. However, other potential headwinds to the value of gold  future comes from the currency markets. Currently, the U.S. dollar seems very strong, and it is possible to continue to rise in the future.