Crude Oil Set-up for Short-term Break

Despite lower demand for higher risk assets, March crude oil is trading slightly better on Monday. The inability to follow-through to the upside following this move appears to have been a failed attempt to breakout over the recent high at $96.92. The sideways trading action also suggests a distributive chart pattern which is often indicative of a topping formation.

Two moves will determine the short-term direction of the market. The first is the close. A lower close will be a sign of weakness. The second is the Fibonacci price level at $95.68. A close under this level will indicate the presence of selling pressure.Continue Reading....

 January 28, 2013 15:37 (GMT) | By FX Empire Analyst - James Hyerczyk