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The light sweet crude markets rose during the session on Tuesday in order to press the top of the recent consolidation zone yet again. The $97 handle was reached, and it is slightly above this level that we see the market breaking out and running towards the $100 area. We certainly would be short of this market, it is far too bullish and has plenty of support at the $95 area, but we would wait until we break above the $97.50 level in order to make sure we have cleared resistance.
Going forward, we think the $105 level will be tested sooner or later. We think that anytime this market falls; there will be plenty of support at $95, $90, and $88. Because of this, we simply by dips in this market as a strategy.