Crude Oil Forecast July 24, 2014, Technical Analysis » Fx Empire …
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Light Sweet Crude
The light sweet crude market gapped to the downside at the open on Wednesday, but bounce off of the $102.00 level in order to form a positive candle. We even went as far as the $103.50 level, which of course has been resistant. We now see that a move above the $103.50 level is will we need to see in order to start going long, and it should be somewhat comforting that the $102.00 level offered support if we do break out, because it shows that there is serious buying pressure below.
If we can get above the $103.50 handle, we believe that this market goes to the $105 level almost immediately. That being the case, we would be very bullish and continue to be buyers of this market. Above there, we see the $107.50 level as a resistance barrier the needs to be overcome, and in fact will be given enough time.
A move above there would send this market to the $110 level, but that’s more or less a longer-term call on our part. We believe that ultimately every time this market pulls back it will provide buying opportunities, as it most certainly has quite a bit of bullish pressure underneath it.
Crude Oil Forecast July 24, 2014, Technical Analysis
Brent
The Brent market initially gapped lower but turned everything back around and shot straight up during the day on Wednesday. That being the case, the market found enough trouble at the $180.00 level in order to turn things back around and form a shooting star. That shooting star suggests that we are going to continue to struggle though, and as a result we actually prefer the light sweet crude market over the Brent market as it appears to be a little bit perkier.
With that, it is probably more or less a confirmation of the North Americans having more economic activity, and therefore having much more demand for the grade of oil that is more prominent in North America, the light sweet crude market. Because of that, we still believe that the market will outperform Brent. We are very flat on the Brent market, but recognize that there is in fact value in the light sweet crude market.
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Crude Oil Forecast July 24, 2014, Technical Analysis » Fx Empire …
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