By CommoditiesMansion.com
Light Sweet Crude
The CL has triggered shorts at the $105 level, which has been a bit resistive lately. This move should be kept in perspective as there is support as soon as $102.50, $100, and $97.50. Until now, this commodity has been a “buy on the dips� kind of market. This shouldn’t change. However – the last high is lower than the one before, which can typically signal that the market is getting tired. In order to go long at this point – new highs are needed. Action around the $100 level would be interesting for new buyers as well.
Brent
The Brent market looks tired. While there is certainly upside pressure as shown by the lack of pullback, the $115 area certainly has stopped the market in its tracks. The last several days have been very tight trading ranges suggesting that traders are waiting for something to happen. The something is probably the situation in Libya. The market can also be said to potentially be forming a ledge, which is simply a bunch of small candles in a row, at the top of the range. (Hence the idea of “falling off� that ledge.) However, this would probably be a simple pullback. A move to $120 triggers more buying, and any shorts in this market should be short-term in nature only.
Originally posted here
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