WTI crude market passed through a strong session on Monday, Oil tried at one point to exceeded the level of $ 96.00. Considers that region beginning of a critical mass, of course, I think that it will cause the kind of resistance. With this, you must recognize that I am a little surprised that we are going to climb down to below the level of 95.00 $.
This may be due to leaning away from risk in a lot of markets around the world on Monday, where you do not rescue package Cypriot banking system mainly benign had wished by a lot of people. Will be exposed to a lot of senior depositors in these banks to large discount operations, and thus the U.S. dollar got support. And with this into consideration, it makes sense that you need fewer dollars to buy oil.
Form candle looks a bit like meteor, but I see a lot in the way in the form of support below $ 94.00 began to take short positions in this period. In fact, I simply believe that this market will be of type “buying on declines” in the short term. I think that a move to the level of $ 98.00 potential very soon, but I also think that we will be stuck in the scope of deliberative for some time.
$ 90.00 Level
For me, I think that as long as we stayed above the level of $ 90.00, this market is supposed to be structured and limited in scope. I think that short periods traders will learn to love this market, and is of course the market is technical in nature. As a result, it makes sense to consider traders to large whole numbers, such as $ 92.00 level and to try to find some kind of candles began supporting the purchase. I think that we could climb down to this level during the short level, and I will be interested to an end in buying at that level. With this, the expected emergence of such a candle on the daily chart might be somewhat exaggerated in this environment intermittent, and in the front, I think that this market will be of the kind which I have to deal with small pieces, and trading dollar or two at certain times.