By FXEmpire.com
Looking at the light sweet crude markets for the Tuesday session, one would think that nobody was there. We simply had no motion at all, and are presently sitting on top of the 88 handle which appears to be some type of support. Whether or not it’s massive support could be open for debate, but it is the site from which we broke out of recently.
Because of this, we have to keep an eye on this level and simply expected to be somewhat significant for the short term, but overall this market does look formal to the downside as longer-term traders will see the recent fall from the 50% Fibonacci retrace level as a good sign to continue to sell.
As such, we look at this candle for the Tuesday session as a signal candle in and of itself. If we can break the top of the range for the Tuesday session, we would buy this market and fully would expect it to move back up towards the $95 level. Alternatively, if we manage to break down below we think the market will eventually test the $84 handle, and if that gives way we should begin to fall quite a bit.
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Originally posted here
