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The light sweet crude markets had a slightly positive session on Wednesday as the $92 level was tested. However, by the end of the day we saw the market pullback a little bit and formed a small shooting star. This conflicts greatly with the hammer that had formed on Tuesday, as such it looks like we will continue to grind sideways overall in this market as traders are simply confused.
Any market like this, it is quite common to see conflicting hammers and shooting stars turn into longer-term consolidation. We still believe that there is a bullish bias to this market, but where we may be entering a consolidated. That will feature a lot of grinding sideways. Because of this, we are not interested in going long of this pair quite yet. In fact, in order to do so we would like to see a break above the $94 handle as it is the resistance area that has kept price down from last couple of weeks.