Light Sweet Crude The light sweet crude market bounce significantly off of the lows for the session on Monday, and tested the $45 handle. That is an area
Light Sweet Crude
The light sweet crude market bounce significantly off of the lows for the session on Monday, and tested the $45 handle. That is an area that should be resistive, but quite frankly we closed close enough to the top of the range for the day that we think the market may continue to go little bit higher. At this point in time though, we do not have any real interest in buying. We believe that simply waiting for exhaustion will be the way to go going forward as we can start selling yet again. We would only buying this contract on a longer-term buy-and-hold type of signals that should show trend reversals. We do not have that yet obviously, so at this point in time we are on the sidelines and waiting for opportunities to sell yet again.
Brent
The Brent markets rose as well, and cleared the $50 level to the upside. With this, if we can break the top of the range, we feel that the market should then head towards the $52 level. We believe that there is more than enough resistance above to keep this market down, so we are willing to sell this market on signs of failure. We believe that the market will continue to have a bit of downward pressure on it overall, especially considering that the demand for crude oil is so low. However, we believe that the markets will eventually turned around, and have significant bounces. Because of that, we have to look at these bounces as potential selling opportunities on higher levels.
Higher timeframe charts will be watched in order to look for buying opportunities though, so having said that we feel that the market will continue to be one that you can only sell, but we are going to have to pay attention as the fall has been so monumental. The sooner or later, this has to stop but in the meantime we certainly couldn’t go against any type of selling opportunity as it presents itself. We anticipate that the $55 level above will be massively resistive.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.