CLU3 Profit Taking and Supply Press Market From its Highs:
Crude Oil is showing signs of failure this morning as it is trading back below 105 and may be in store for its first weekly drop in over a month. Higher than expected inflation out of Japan is creating a risk off trade and putting pressure on the Crude market. Also, rising inventories and news that China will cut its manufacturing capacity has put a damper this rally. Resistance was found yesterday at the 105.95 retracement level. Many traders were eyeing a test to 106.50 as a follow through and sign of strength on a technical basis. The retreat in equities is also providing pressure on Crude. Watch the 103.85 level and a move below here will signal a further correction. As the day continues, a dollar below 82 should keep Crude in check but if we see a correction and a trade higher in the dollar look for further pressure on Crude. Look for stabilization in the equity market as a driver for Crude prices. Traders like buying Crude into the weekend and a close above 105 is pivotal.
Resistance -105.75-105.95**, 106.91**, 107.88*, 108.93**, 110.00***
Support - 104.79-105***, 103.67-103.85**, 103*, 101.50-72***
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.