By FX Empire.com
Light Sweet Crude
The CL contract fell hard during the session on Thursday, and even formed an outside reversal day – a very bearish signal. Because of this, we are willing to have a shot at selling this contract on a break below the bottom of the Thursday session. The move down should be slowed at the $95 level if we get it, and we would be more than willing to exit at that point if there is any sign of support. The breaking of the top of the Thursday session’s highs would be massively bullish. Because of this, we need to let the market show us which direction it wants to go, and then simply follow it.
Brent
Brent markets fell hard on Thursday, closing towards the very bottom of the range. The $107.50 area has found itself as support again, but a breakdown below it could be coming – judging by the candle formed for Thursday. The breaking below that level has the market testing $105, and if that gives – we go far lower. In the meantime, we need to see if the bottom of the Thursday range gets violated, which could be a sign that the market wants to sell off some more. We need to see a supportive daily candle to think of buying at this point, due to the ferocity of the bearish candle we now see.
Originally posted here
