WTI Crude Oil
The WTI Crude Oil market had a very busy and choppy session on Monday, as we continue to show signs of volatility. The $52.50 level above is massively resistive, and I think we will continue to struggle to break above there. If we did get above that level, then I think the market probably goes to the $55 level after that. However, I would need to see a daily close above the $52.50 level to put any money to work. In the meantime, I think that the market is trying to build up momentum, but quite frankly doesn’t have it yet. If we break down below the $51 level, then I think the market is ready to go to the $50 handle. Small position sizing is a must when it comes to the WTI market.
Crude Oil Video 24.10.17
Brent
The Brent markets rolled over a bit during the day as well, testing the $57.25 level underneath. I think that the $58.50 level above continues to offer resistance, but if we clear that level, the market should then continue towards the $60 level above. A breakdown below the $56.75 level would be negative, and send this market looking towards the $55 level underneath. I think we continue to see a lot of volatility based upon not only concerns about oversupply in the crude oil markets, but also the US dollar strengthening overall. Remember, if the US dollar rises it often will work against the value of commodities, and of course crude oil won’t be any different. I think we will continue to see a lot of noise, but right now I suspect that short-term trading is probably about as good as it gets. In fact, binary options might be your best choice as we have a lot of back-and-forth ahead of us.
This article was originally posted on FX Empire