By FXEmpire.com
The Light Sweet Crude markets rose on Thursday as several members of the Federal Reserve spoke of low rates going forward. The markets took on their usual “anti-Dollar” tone, and as a result could only go one direction: up.
The breaking of the downtrend line that has kept this market lower lately seems to suggest that we are going to continue going higher for the near-term, and should begin the next leg up. The market will also have to worry about the possibility of slowdowns around the world of course, but the demand coming out of the emerging markets will continue to put a bit of a floor under the market’s overall.
The downside will be somewhat limited, and the ability for the bears to put pressure on the market will be stifled by not only the emerging markets, but by the tension in the Middle East. Although there aren’t as front and center as they have been, it is well-known that a bad headline can come at any time out of that area, and the Iranians are especially guilty of this. With that in mind, we aren’t willing to sell anyway.
The market should be one that we can buy on the dips for the meantime, and as such we are looking to do just that. The shorter time frames can be used as a “gauge” of when to get involved, and bullish candles – especially hammers – can be used on them in order to buy. Looking for short term selling signals is very risky, and we will not pay attention to those signals at all for fear of the bulls taking back over again.
The $95 level has been our “line in the sand” for some time now, and even with this recent downturn, we haven’t really approached that level. The fact that we have had a specific point that we had to hit in order to sell has saved us from making some of the mistakes that many traders have just gotten burned by. For us, it is only buying that we can do – and we are looking at the dips in this market as opportunities to do so.
Oil Forecast April 13, 2012, Technical Analysis
Originally posted here
