Light Sweet Crude
The CL contract rose during the Tuesday session, and came close to wiping out the losses from the afternoon on Monday. However, the $100 level looks to still offer serious resistance as the market struggles to rise above it. The reality is that at this point in time, the market looks like it will continue to consolidate between $95 and $100 in the near future. The breaking of the highs from Monday would signal strength, but the $103 level just above should offer resistance as well. Because of this, we feel that the market will be more of a scalping environment in that $5 range until we get a hard break in one direction or another.
Brent markets had a very strong day on Tuesday as traders continue to buy the market. The $112.50 level is just above, and could prove to be resistive in the end. The market looks like it wants to rise, but the move suggests that we could get a small pullback in the process. The direction is certainly up, so buying on short-term dips is how we will proceed in this market. The selling of Brent isn’t an option at the moment with this obviously bullish market.