I don’t think we’ll necessarily break out significantly from this, but I think the rallies in general will continue. West Texas Intermediate crude oil market is slightly higher during Thursday’s trading as we look to threaten the $75 level. However, the biggest thing they should remember is that Friday is the US labor market and therefore many traders will try to exit the market in general. Advertisement See Why Oil Is One Of The Most Popular Commodities I’M TRADING OIL NOW Looking at this chart, the 50-day EMA has offered resistance near the $80 level, an area that is difficult for market participants to break. If we reach that area, the market will likely see it as a good shorting opportunity. A break above that would obviously be very bullish, but I just don’t see how that happens without some massive „rally risk”. Even if we did get it, it would still more likely be short-lived because there are serious concerns about whether we have enough demand. Looking for Stop Signals The market has just come out of a „falling wedge”, so there may be technical traders ready to step in, but ultimately I think that is highly unlikely. Markets will likely see this market as still volatile and sometimes hit in the face, especially as the Federal Reserve looks to continue to tighten. If so, the economic situation should continue to slow down, reducing demand for crude oil. I don’t think we’ll necessarily break out significantly from this, but I think the rallies in general will continue. With that in mind, I’m looking for signs of exhaustion so we can cut short again. I am not interested in buying, at least not yet, as the market sees many reasons to believe that oil will remain soft, as do other commodity markets in general, with the possible exception of gold and silver. The energy has hit all the charts and I just don’t see it changing. In the current situation, the occasional rally every few days dying out seems to be working.