The light sweet crude oil market has been bullish again on Monday, as the markets continue to see an attempt to break higher overall.
Light Sweet Crude Oil
The light sweet crude oil market has shown itself to be rather strong during the trading session on Monday, gaining roughly 2% as I recorded in this video. All things being equal, short-term pullbacks open up the possibility of buying opportunities with the 200-day EMA offering support.
(Click on image to enlarge)
The $62 level underneath would be massive support, at least from what I see, but I also see that there is massive resistance near the $66 level. If the market were to break above there, then we could see this market looking to the $70 level. This would obviously be a very bullish turn of events, and drag many of the other grades of oil higher right along with it.
Shifting the Global Trend
All things being equal, short-term pullbacks will end up being buying opportunities, and I do think that oil is in the process of trying to change the overall trend. The trend has been pretty miserable until recently, but I think that traders are starting to look at the idea of central banks around the world loosening monetary policy or, maybe more importantly, the Federal Reserve loosening monetary policy as something that could stoke the flames of global trade.
That being said, it is really not until we clear the $66 level that I think we reach total escape velocity, but being above the 200-day EMA certainly helps the cause. This is a market that will continue to see a lot of buyers on dips from what I see. I have no interest in shorting oil at the moment, although I still believe that we are in the middle of consolidation.
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