Light Sweet Crude
The Light Sweet Crude markets rose during the start of the Monday session as traders reacted positively to the meeting in Europe between Sarkozy and Merkel. The market ran up to the $102.50 level, and then fell as the resistance held true. The resulting candle for the session was a shooting star, and it looks like we may see a bit of a fall from this level, and the $100 level will continue to be the start of massive resistance. We see a pullback coming, perhaps to the $95 level. We would be sellers on a break below the lows of Monday, but only for a few Dollars as this market is incredibly buoyant.
We see the $95 level as support, as well as the $90 level underneath. The market is going to find support at one of these points, so we would also be willing to buy in this area once we get a supportive candle such as a hammer or bullish engulfing candle in the area.
The Brent markets actually fell over the session and formed a shooting star like its cousin the Light Sweet Crude market. The recent range looks set to continue, being between the $112.50 and $105 levels. The market looks set to fall from here, but will find limited downside as the grind continues. With all of the uncertainty around the world presently, the market more than likely doesn’t know what to do. Because of this, all we can do in the Brent markets is trade back and forth in a day trading manner as any gains will be short-term in nature. The selling of this market isn’t the easiest thing to do as the market seems to defy gravity with the fundamentals being so weak, but the truth is the grind has been going on for some time now, and there is nothing in this chart to suggest that it is going to change anytime soon. The $110 level seems to be a bit of equilibrium of sorts in this market, so the commodity should continue to be attracted to it.