Oil Forecast Dec. 1st, 2011, Technical Analysis

Light Sweet Crude

CL rose quite strongly during the session on Wednesday as markets around the world rallied. The oil contracts all had a positive showing for the first part of the session, but like all others, the CL gave up quite a bit of its gains. The $100 level started to push back, and as a result – the daily candle is a shooting star. If the lows of the Wednesday session get violated – this could be the start of a down move. With this in mind, we are willing to pass on any longs at the moment.

Oil Forecast Dec. 1st, 2011, Technical Analysis Oil Forecast Dec. 1st, 2011, Technical Analysis

Brent

If the CL had a questionable day, the Brent market should leave no questions at all – it completely fell apart in the later hours of the session to form a prefect shooting star. The top of it is at the $112.50 level, and that resistance has been strong. With this in mind, we think consolidation should continue and are ready to sell on a break of the lows form the Wednesday session.

Leave a Reply

Your email address will not be published. Required fields are marked *