Light Sweet Crude
The CL contract is currently at a minor support area, as $100 a barrel held today. If you like the idea of buying crude, this is a good spot. However, it appears that we are trying to consolidate so patience might be the order of the day. A break below $100 gives us a better entry as $95 appears to be massive support, and a bargain. Shorting CL at this point is not an option.
Brent
Brent is currently consolidating as well, but like CL – it has an upward bias. The $112.50 level has been serving as support, and below that is the $105 level – which would be a real bargain. Looking at the charts, it appears that we are destined to retry the $120 level that was so resistive recently. However, no matter what happens, this contract isn’t to be shorted for anything more than a quick scalp.
