By FXEmpire.com
The Light Sweet Crude markets had a slightly bullish day on Friday, but managed to lose much of the gains by the end of the session. The market found the $104 level, but it held as resistance as the market remained constrained in the recent range. The consolidation will certainly continue to frustrate most traders as it is a scalper’s market at the moment. The recent action has been within the $102 and $105 levels, and the current behavior suggests that this could continue. The $100 level below should continue to be very supportive as well, and as a result it is difficult to suggest a trade for anything more than a short-term move of a few dimes or at most a Dollar as the market is so tightly wound.
The $102 level is the closest thing to an obvious point in the chart at the moment, and the level would be a reasonable place to look for support. All things being equal, the market will more than likely have an easier time rising than falling, but the action will be choppy none the less, and this market will continue to frustrate the average trader. In this scenario, you are either going to have to scalp the markets, or you have to be able to look at the overall picture. China and India both are more than willing to take up the slack for lower demand out of Europe and the United States. So while the markets will focus on this, the demand will more than likely continue to grow over time. Also, the US is starting to show signs of expanding again – and this should continue to push prices higher over time as well.
Having said all of this, we feel that as long as we stay above the $100 mark, buying dips should work overall. However, as stated before: This market is going to take serious guts and fortitude to trade going forward as the market will be pushed and pulled by various forces, most of which won’t necessarily be obvious.
Click here a current Crude Oil Chart.
Originally posted here