Light Sweet Crude
The CL contract got whacked on Thursday as the “risk off” trade came back into vogue. The breaking of the level to the downside only confirms that the $100 level is where many traders think this market is getting overly expensive. The Dollar gained during the session, and with sharp moves against the Euro, we saw this market fall in sympathy. We are willing to sell rallies as long as we are under $100 now.
Brent fell hard on Thursday as traders bought the US Dollar against most things. The market is still in a consolidative phase, and looks set to try and reach the $105 level again. This contract looks more range bound than the CL contract, and we are treating it as such. Because of this, we are willing to sell rallies or a break of the Thursday lows – but are only aiming for a few dollars profit.