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The light sweet crude market was fairly quiet on Friday after forming a hammer on Thursday. This recent price action show support at the $90 level, and this doesn't surprise is based upon the longer-term charts. $95 now looks like it could be resistive, but in the end we still think that higher prices could be coming. With Federal Reserve quantitative easing taking the attention, and of course the problems in the Middle East it is very likely that something will kick prices higher before it's all said and done.
We aren't selling simply because there are too many supportive areas below in order to feel comfortable doing so. $88 looks supportive, and so does the $85 level. With this in mind, we are only buying on signs of strength, and the hammer from Thursday could be the beginning of a bounce in this market.