Technical analysis for crude oil – 21 May 2013 — The WTI crude market relatively passed by a good trading session for hours on Monday. In fact, the daily candle formed a shooting star. After I had monitored the market for the whole day yesterday and for what happend in the market from the early beginning of the trading, I expect that we are near the level of $ 97.00. Because of this I expect that this market will drop a little, but it is not necessary or even expected to watch a collapse in Oil market.
This market is still far from intermittent Go in the summer months, in order to be disturbed by looking at the long term at this point we are not going to watch any surprise soon. In view of the market, I think that not only the withdrawal is coming but maybe we watch a rise up in the market to $ 95.50 as a support level.
Saudis has taken a little bit of their production outside the Oil market for the removal of the decline that we have seen recently in the oil market, but at the end of the demand will be really, what is important.
I can see any big change is expected to happend in the Oil market but we can say or guess that, the low price is a bad indicator fo the market. Because it mean that there is not high demand for production, so we can say that on the short term there is not mach change in the price. But any positive data about production or increase of production it will not lead to a high rise at the short term.