The West Texas Intermediate Crude Oil market went back and forth on Wednesday as we continue to see a lot of noisy behavior in general. The 200-day EMA is an indicator that a lot of people pay attention to, and a certain amount of algorithmic trading will continue to come into the picture. The market breaking down below the bottom of the candlestick for the Wednesday session could kick off even more selling, but I just don’t see that happening right now. That being said, it is something I’m willing to trade if it happens.
A little bit of a bounce does make a certain amount of sense, but at this point, I think it probably has somewhat of a limited lifespan. Breaking above the top of the candlestick opens up the possibility of a move to the $100 level, and then eventually the $105 region. The market has broken through a major uptrend line, so need to pay close attention to the fact that we are continuing to see negativity.