WTI crude price rose during the session on Monday, where breaking through the top channel for crude oil. This is a clear upward signal, but I was still somewhat cautious about taking a long position at this point. I can discuss the attempted of purchasing WTI crude oil, and perhaps stick to the level of $92.00 , but frankly, I’m not convinced of this.
I think it’s probably easier to sale if what we got on that type of improvement. There are a lot of fears of inflation, and this of course is a bad thing for oil, because there will be less demand. Also, the U.S. dollar was fairly strong recently, and it did not necessarily see it ends soon. In this case, you may suffer a lot of commodities.
It really depends on the time frame in which they are trading. If you are traders of short time frames, it is possible to find value in this market above the $ 89.5 level, targeting the $ 92.00 level. I can see buying in that situation and trading in a very short time frames to do so.
However, I tend to swing trading more, and therefore this type of trading is not much attract me. In the end, you can see how this market was sold, and despite the fact that the probability of a rebound sale is great, there is a logical selling significantly from my point of view. In that case, only we are also approaching the time of year in which it moves away from the market traders while they go on vacations. This is what has lead to a deliberative conditions too tight.
In the front, I think that this market will continue to be somewhat volatile, but the risk will be more regressive than anything else. If we can hack below the $ 85.00 level, I think that the time may start finance ministers to intervene in the price. However, over the longer term, this market will decline. In the end, it is a matter of time before the Americans appeared already in the pits to get and their own fuel. And when they do, you will end up for the Middle East.
This, of course, expect of a very long-term.