The light sweet crude markets initially pushed higher during the week over the last five sessions, but by the end of the Friday trading day found itself in the red. In fact, the candlestick that was formed was a perfect shooting star, and it has a based at roughly the $95 level.
This is very interesting, as we see on the daily charts the $95 level is indeed very important. In fact, in order to sell light sweet crude we suggest that the $95 level has to be cleared to the downside. This is interesting because it not only is a sell signal on the daily charts, but it is on the weekly charts as well.
As far as weekly trading is concerned, a daily close below $95 has us aiming for $90 in the short term. For the long-term, we think that we could revisit the lows at $80. On the other hand, if we break the top of the shooting star on a daily close, the very first target will of course be $100, but we could see as high as $110 before it’s all said and done. In the meantime, we need to see which side of this candle the market breaks.