Light Sweet Crude The light sweet crude market initially fell during the session on Tuesday as we dropped to the $43.50 level. We eventually turned back
Light Sweet Crude
The light sweet crude market initially fell during the session on Tuesday as we dropped to the $43.50 level. We eventually turned back around though, and we ended up forming a bit of a hammer. The hammer of course suggests that the market is going to grind its way to the upside, and a break above the top of the hammer has us buying as we should then reach towards $46 next, and then the $48 level above there. We’ve no interest in selling this market right now, at least not until we get below the $42.50 level, which would signify a “lower low.” That of course is a negative sign, but in the meantime we believe that the market is still consolidating although it does look like it is getting a bit heavy at the moment. Caution is advised, and we are going to stick to short-term charts in order to place our trades.
Brent
Brent markets initially fell but then turned back around and form a slightly positive candle. We bounced off of the $47 level, and that of course is a positive sign. A break above the top of the hammer for the session on Tuesday is technically a buy signal, but we would prefer to see this market break above the top of the shooting star from Monday in order to start buying. At that point in time, we would anticipate that this market would reach towards the $51 level. As far as selling is concerned, we have no interest whatsoever, unless of course we break down below the $46.50 level. If we did, at that point in time we believe that this market would reach down towards the $44 level.
The one thing that you can count on is quite a bit of volatility though, and as a result you will have to keep your trading positions relatively small, or at least on short-term charts in order to be able to take advantage of the back-and-forth type of action that we think will still dominate this marketplace.
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.