Light Sweet Crude The light sweet crude market fell during the course of the session on Friday, as we continue to look very soft in this market. After
Light Sweet Crude
The light sweet crude market fell during the course of the session on Friday, as we continue to look very soft in this market. After all, we broke down below the bottom of the shooting star from Thursday, which of course is a sell signal. We believe that this market has absolutely no strengthening, and that the $47 level at this point in time is simply going to be yet another hurdle to overcome. If we can break down below the $47 level, we should then head to the $45 level, followed by the $42 level.
Ultimately, any rally at this point in time should be a selling opportunity as there is far too much strength in the US dollar as well as lack of demand when it comes to the energy sector anyway. We believe that the $50 level above will continue to be massively resistive, and as a result we have no interest in buying.
Brent
The Brent market fell hard during the course of the session on Friday, testing the $52.50 area. With that being the case, the market closed at the very bottom of the range, and that of course signals that we may see a bit of continuation. Continuation of course goes with the overall trend in general, so it all ties together quite nicely. We are sellers and have no interest in buying. We believe that the market will then reach towards the $50 level, and then perhaps even lower than that given enough time.
Any rally at this point in time should just simply be a selling opportunity, as the $55 level above should be massively resistive. Ultimately, there is a large consolidation area just above that could run all the way to the $60 handle as well. With that, there’s just no way whatsoever that we can go long. Given enough time, we will eventually see the market turned back around, but with that we are more than likely going to be waiting for quite some time for that’s actually happen. We remain bearish.
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.