Crude Oil Prices August 3, 2010, Technical Analysis

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Light sweet crude markets fell during the session on Thursday as the “risk off environment” put into play by the failure of the ECB to act had traders selling off anything remotely risky. The light sweet crude markets of course didn’t fare any different than most commodities, and sold off. However, we did see a little bit of support at about the $87 handle, and all things considered this market is one of the more stable in the commodity complex.

Today’s nonfarm payroll report will be very important for this market. If the number comes in as expected, it’s probably not for an offer the Federal Reserve act, and that would be very negative for the markets. If the number comes in over the 120,000 level, there’s a good chance that the markets will read this is a strong and start to support energy. If the number is poor, and perhaps below the 90,000 level, we should see risky assets be bought off as the market speculates on Federal Reserve monetary easing in the near future.

With all that being said, there is quite a bit of support below here and we think that the $84 level needs to be broken to the downside in order to start selling.\

 

Crude Oil Prices August 3, 2010, Technical Analysis

Crude Oil Prices August 3, 2010, Technical Analysis

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About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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