By FX Empire.com
Light Sweet Crude
The CL contract had a slightly bearish day on Wednesday as traders sold off risk assets in general. The resulting candle for the session looks much like a hammer, but at the top of the recent thrust higher. This market looks like it has found support in the $95 area, and as a result we think there is still a grind higher from here. The $100 level is certainly calling, but the move may be slow. Adding to the technical picture is that the oil inventories showed a significant drawdown as well.
Brent
Brent markets did exactly what we thought they would during yesterday’s video. The breaking of the bottom of the Tuesday shooting star lead the market to fall back down to the next support level: $112.50. Now we need to see if the level holds as support. The volume on the session was strong as well, and as a result we look for more weakness in this market, but perhaps after a bit of bounce.
Originally posted here
