Technical analysis for crude oil – 23 May 2013 — The President of the Federal Reserve Bank, “Ben Bernanke” in front of the U.S. Congress during the session on Wednesday, and pointed out that it is possible that there will be a reduction in quantitative easing in much sooner than expected the majority of participants in the market. For this reason, horrified the entire market did not think the U.S. dollar later in the session. This of course has led to an impact on contracts for WTI, we went to the $ 94.00 level.
The reason why this region is important to me is the fact that we have to form a hammer, which took place in Oil market there before five sessions. Supposed to be very supportive at the next coming level, and as a result I expect kind of resistance at that point. This does not mean that I am ready to start buying at that level at all. I need to see some kind of supportive candle, perhaps by the end of the month, at least in order to start buying.
A lot of support at the bottom
Frankly, I find it hard to take a short position in this market until we get below the $ 92.00 level. For this reason, I will simply get out of the market and watch it moves backward and forward, knowing that we are heading towards the summer months. Of course, the summer months tend to be deliberative at a specific scope and trend, and again I still think that we are trying to know what is the scope. I think that the $ 92.00 level could in fact be a bottom of that range, while the $ 97.00 level looks like will be the top.
Oil market Too lazy when it comes to choose the bands. Tends to get breaks by $ 5 and when it feels more active, is heading to breaks by $ 10. For this reason, you should think of this market as one of the most technical markets.