Generally we stay clear of the crude oil markets, as they generally display high levels of volatility while whipping up and down but really getting no where. Every now and again the crude oil markets will develop into a trend, that’s when we focus our attention. When crude trends it generally produces very nice price movements.
Currently WTI crude is cruising back upwards after a downward bearish trend extension. We are just waiting for the market to find value back at the trend mean, which is currently located around a strong resistance level. If the market drops a nice strong bearish price action signal here, we can make a fair call that the trend is intact and the downward momentum is going to continue.