Light Sweet Crude
CL rose rapidly during the Tuesday session as the risk on trade came back into vogue. There is now hope that Europe may do what is necessary to avoid a recession, and with that – there should be more demand for oil in the end. This is more of a trade than an investment, and if you listened to the video yesterday, you were aware of the very real possibility of a bounce in this market. It looks like the $85 level is slowing the progress of the market down, and with the overall bearish tone of the markets in general, if you are profitable at this point – your stops should be at least to the breakeven point. We see massive resistance ahead, up and until we see $90. Because of this, we don’t recommend buying at this point as the market is likely to remain stuck in the 80 -90 USD range.
Brent
Brent markets had a very similar day on Tuesday as the market broke the top of a hammer, signaling a buy trade. The Brent market seems to have a little more to go before it hits real resistance at $110, and as such we feel the bullishness still has a bit of legs at this point. We certainly couldn’t sell, but would like to buy on dips at this point in time.
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