April NYMEX crude oil futures has been in a relatively tight $92.44 to $93.94 balance bracket for the past three days. After breaking from a one month previous balance bracket last Wednesday, the market appears to be developing a new balance bracket.
UPSIDE SCENARIO
After breaking form the previous balance last Wednesday, the market gapped open lower on Thursday, leaving a $93.94 to $94.21 gap. If the market gains acceptance above that gap, it may test the $95.25 resistance level. Above that level is another resistance level of $96.65.
DOWNSIDE SCENARIO
The market has found support near $92.44 the past three days. If the market gains acceptance below the $92.44 support level, it may test the $91.25 reference below. Additionally, there is a $89.86 to $90.50 gap below which is also an important reference.
