Technical analysis for crude oil – May 30, 2013 — WTI crude market fell dramatically during the session on Wednesday, but as you can see, I still look at the charts for four hours in order to get guidance. The most obvious candle be long on the Red Line during the session of course is the formation of Shehab at the bottom of that range for the next candle. This is because it suggests that we will see further weakness, although I think that this point of time that the $ 92.00 level probably will stand up being a support level. As you can see from this chart, there is a large yellow box extends from that level until the $ 97.00 level, which of course I see a summit of the recent consolidation area.
Markets seem very quiet now, even though we lost a lot during the session. In the end, was once a “risk-free” in the market, but frankly, these days we have seen a lot of swing trading. See some weakness in one of the points at the beginning of Thursday’s session, but are likely to see the kind of transformation later. In other words, the algorithms for moving back and forth and play one by one principle.
Strong support along the way to down to $ 90.00.
I can see the strong support on the way down to the level of $ 90, and as a result, even the breaking down might not pay me to get excited about the short position. It is agreed that I may I take a short trading process, but in the end, I think that the best choice would be simply to wait until we get to the level of $ 90, and then Crae support signals.
On the other hand, it is possible to penetrate the top of the formation Shehab who Chklnah near the end of the session on Wednesday, and, of course, is a bullish signal. It is possible that the market is moving this along the way to the top and down to the $ 97.00 level at that point, but in any case, it will be a bumpy journey.