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Light sweet crude market had a fairly strong week as we approach the $100 level. The market looks healthy, as we have broken above the tops of the two previous hammers. It now looks like only a matter time before we break above $100, and with the tensions in the Middle East rising that could be relatively soon.
We think that the $100 level will act as a little bit of resistance, but this is more or less a psychological level and not a structural one. We see real resistance at the $105 level, and if there is a flare up of more tension and violence in the Middle East, we could very easily at the $110 level. Looking forward, we actually prefer buying on dips if we can get supportive candles. As long as we are above $90, we certainly would not consider selling.