By FX Empire.com
Light Sweet Crude
The CL contract had a down day on Friday as traders continue to worry about economic growth in the EU and beyond. The rise of the Dollar is also starting to wear out the oil markets, and the ferocity of the move lately justifies a pullback. The market looks vulnerable down to about $95, where support should come back into play. The $90 level sits below there, and should be supportive as well. We sell on a break of the Friday lows, with the idea of only a few dollars in the trade to be had. We can’t buy at these levels – it has risen too far, too fast.
Brent
Brent markets rose during the session on Friday, only to be repelled and sent back down. The resulting shooting star at the bottom of a down move is a very bearish sign as it shows the rally has failed. The $107.50 level looks supportive, but this candle formation leads us to believe that it will give way. A break lower sends us to $105 in a hurry.
Originally posted here
