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The light sweet crude market fell during most of the session on Wednesday, but bounced off of the $95 handle in order to form a hammer. This level looks supportive, and we think that the markets will in fact bounce from it. However, we need to see a break of the highs from the Wednesday session in order to go long of oil, and until that happens we have to be flat of this market.
We feel that the $100 level will be resistive going forward, and as such we feel that it could be a bit of a hiccup on the way to the $105 level. Ultimately, we feel $105 will be too much for the market to overcome in the short term, and as such would certainly take any profits that we have at that point in time. As for selling, we feel that there are far too many support areas below in order to even risk it at this point in time.