By FXEmpire.com
The Light Sweet Crude markets had a rough week over the last several sessions. The fall to the $95 level has been rapid, and the area looks as if it has long-term significance in this market. The market looks as if the area will be a major “decision point” in the future of the market, and it is because of this that we are so interested in the level.
The $95 level represents the start of a downtrend if we break below it as far as we see, and the area looks like it is being tested by significant pressure over the last couple of sessions. The level will be our measuring stick for direction in this market. As long as we are above, we will only buy. If we are below, we will only sell.
The daily charts will be what we use in order to make our decision. If the market closes below the $95 level at the end of a daily session, we are willing to sell at that point. (Also, we would seriously consider buying the USD/CAD pair at the same time as it will typically move in the coordination.
The market does look like the bears are starting to gain control, and as long as the pressure remains, it would be difficult to get overly bullish. A bounce from this area would be a great place to buy from, but we need to see a daily close above the $98 mark in order to feel comfortable in a long position. This shows us that the momentum is moving higher, but the $102 level looks very resistive, and we feel that it will struggle to get above that mark.
On a daily close below $95, the $90 level will be the first target going forward. The $85 level also could be a target as well, and as such we would be aiming for a partial close at $90, and would allow us to keep a partial position on to take advantage of any possible meltdowns.
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Originally posted here
