- The crude oil market has been all over the place during the trading session as the Light Sweet Crude market is right in the middle of the larger consolidation area that I think we are trying to form.
- After all, we have been bottoming for a while, and volume has been picking up.
- That’s typically a good sign that there are buyers here who are trying to get involved in turning things back around.
- That being said, this is typically a very long-term process when there is so much uncertainty, therefore you have to be very patient.
Short Term Trading
Short-term trading is probably the order of the day here, as we have seen so much in the way of sideways action over the last couple of weeks. That being said, volume is picking up and we are paying very close attention to large, round, psychologically significant figures in the form of the $65 above, and $60 below.
Keep in mind that the $60 level has been important for some time, and therefore it’s very likely that we are going to continue to see a lot of back and forth trading that those who are nimble can probably take advantage of. As we are currently right around the $62.50 level, then it does make a lot of sense that we don’t really have anywhere to be at the moment, so therefore you need to be very cautious about getting too big with your position at the moment. At least, you need to wait until the market makes a true decision.
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However, if you are somebody they can sit and watch the charts all day, then you might have the ability to go back and forth on lower time frames. I will say that it seems like there’s more of a “lean to the upside” in this market, so those of us that are looking at longer or higher time frames, you could look at it more or less as a “buy on the dips” type of scenario.