Light Sweet Crude The light sweet crude markets initially fell during the course of the day on Monday, but found the $89 level to be supportive enough to
Light Sweet Crude
The light sweet crude markets initially fell during the course of the day on Monday, but found the $89 level to be supportive enough to turn things back around. With that being the case, the market appears to be well supported in this region, and as a result we would not be surprise at all to see a bit of a bounce from here. The $95 level above is the top of the recent consolidation area, and we think that the market won’t be able to go above there regardless of what happens next. Any resistive candle between here and there should be a selling opportunity, and as a result we would use it as such.
On the other hand, if we do break down below the $88.50 level, that would be a very negative sign. At that point time, we would be willing to sell this market and hold onto it until we get down to the 85 handle. However, we recognize that the market will more than likely trying to continue to consolidate.
Brent
The Brent markets as you can see initially fell during the course of the day on Monday as well, but then bounced enough to form a relatively positive candle, closing just underneath the $93 level. That being the case, it appears that the market may try to make a run back towards the $97 level, but we do not think that he can go any higher than that. Any resistive candle between here and there, we would be sellers as the market is most certainly in a massive downtrend. We believe that the oil markets will continue to sell off in general, and that it will be quite some time before the market can be bought. In fact, we would have to see this market rise above the $100 level in order to start going long, something that we don’t anticipate seen anytime soon. Quite frankly, we anticipate seen $90 before we see 100 at this point in time as the US dollar continues to strengthen overall.
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.