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The light sweet crude markets had a slightly bullish session on Wednesday, as the market slammed into the $95 level again. The area has acted as resistance lately, but unlike the previous times that we reach towards the area, the Canadian dollar did in fact get a bit of a bid during the session. Many times, one of these markets will lead the other one. In this particular case it appears the Canadian dollar is leading oil.
We prefer to buy this market on either pullbacks that show support closer to the $90 level or a daily close above the $95 level. If we get that close above $95, we think that $100 a barrel is the next step. We think that shorting this market is going to be almost impossible until we get below the $84 level.