By FXEmpire.com
The light sweet crude market had a bullish session on Monday, as the market retested the recent highs. The $90 level still looks to be rather resistive, but it does appear that the market is dead set on attempting to break through it. There were reports of the U.S. Navy fire not an unnamed ship in the Strait of Hormuz during the Monday session, and it is possible that nervous traders bid the price of oil up in reaction.
There’s also open speculation that quantitative easing is on the table into the Federal Reserve, especially after the poor retail sales number out of the United States. If they do go ahead and ease more, it should weaken the US dollar which of course will bring up the price of oil.
Nonetheless, there are two distinct areas that we are paying attention to. The $90 level, which we see going all the way to $91 as resistance. This area will be difficult to overcome by the bulls, but once it gives way we believe that the market can run all the way to the $100 level. On the downside, we still see the $84 level as support, and don’t think that this market will fall until we break through it. If we do get below it, $78 is the next serious support level.
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Originally posted here
