The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK ( TheLFB-Forex) -- Crude oil markets are oversold in the near-term, and hitting main support areas that will be difficult to easily break. West Texas Intermediate (WTI) (94.00) has a neutral momentum read in the mid-term. The four-hour trends are holding their short-sided direction, which sets up a sell-the-test-of-resistance play from the next upside move towards 96.00 on WTI trade.
The potential for new trade signals to form today is weak, after the recent explosive long and short intra-day moves that hit for 30-minute periods in the previous few sessions finally found support. The reversal through resistance at 100.00 on WTI has created a barrier of upside resistance that will be very hard to break. Now is not the time to be holding WTI positions for the long term.
Headlines:News wires are very quiet regarding crude oil valuations, ahead of the Wednesday U.S. Oil Inventory numbers and FOMC interest rate statement and press conference. Today is not the day to be looking for crude oil trades.
WTI Technical Outlook:
WTI Four-Hour Chart: Trading under the low of May, and the massive swing point formed at that time at 95.00. The 100-day SMA (orange line) is at 100.0 resistance. The 200-day SMA (red line) is holding support at 92.00. ABC potential: A leg reversed from a test of 103.00 resistance to test 96.20 support. B leg move higher to test 100.00 resistance. C leg has completed the test of 91.50 support. Call to action: Look to sell the upside tests of resistance between 95.50 and 96.50, if global equity trade is being sold. No long trade signals until a weekly chart can close above 97.50. Want to learn new-generation global charting?