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A light sweet crude market started to rally during the Wednesday session, but failed to do so in the end and formed a shooting star for the daily candle. This suggests that we will head back towards the $95 level, but either way it is simple consolidation at work. We think this market is still bullish overall, especially with more trouble heating up in the Middle East.
The light sweet crude market is always sensitive to potential headline shocks, and even more so at this point. Right now, the world is focusing mainly on the Federal Reserve and what he wants to do later today. If there is massive quantitative easing, expect the crude markets to gain as a result. The $100 level looks reasonably resistive, but we think the real resistance isn't found until we hit the $105 level. As for selling, they're sadly far too many support levels below current prices for us to be comfortable doing so.