Light Sweet Crude
The CL contract fell during the Friday session, only to bounce again and form a hammer for the day. The $95 level continues to show itself as support, and until it is broken to the down side, we simply cannot sell. The breaking of the top of the Friday candle should show buying strength, and could be used as a reason to place a short-term buy in this market. However, we think the headlines will eventually push this market down. None the less, this market will be choppy regardless.
The Brent markets fell on Friday as traders continue to sell off riskier assets. The $105 level acted as support though, and continues to keep the market up. The range is still form the $105 mark to the $115 level, but the pressure to the downside could continue as the US GDP was so weak. The EU looks like it will be going back into recession, and the demand curve should flatten a bit as a result. The situation in Iran is about the only real reason to buy oil at this point. However, until we see the breaking of the $105 level, we cannot sell. In the meantime, we might try a scalp or two to the upside if we get above the Friday highs.