Light Sweet Crude
The CL contract had an initially bearish day for Friday, but bounced back later in the session to form a hammer. It appears that the $95 level will be challenged, and that there is significant strength under this uptrend to consider the possibility of a breakout coming. The market will have to close on a daily chart about the $95 in order for us to buy though, as the level has been so resistive. We aren’t comfortable selling at all currently.
Brent
Brent had a strong day on Friday as traders continue to buy the contract. The area just above where it sits includes the $112.50 resistance area, and it will more than likely struggle at that point. Because of this, we aren’t willing to buy just yet. A daily close above that level gets us interested in buying. Selling can’t be done until we break below the $105 level.
