Light Sweet Crude
CL rose quite strongly during the session on Wednesday as markets around the world rallied. The oil contracts all had a positive showing for the first part of the session, but like all others, the CL gave up quite a bit of its gains. The $100 level started to push back, and as a result – the daily candle is a shooting star. If the lows of the Wednesday session get violated – this could be the start of a down move. With this in mind, we are willing to pass on any longs at the moment.
If the CL had a questionable day, the Brent market should leave no questions at all – it completely fell apart in the later hours of the session to form a prefect shooting star. The top of it is at the $112.50 level, and that resistance has been strong. With this in mind, we think consolidation should continue and are ready to sell on a break of the lows form the Wednesday session.