Oil Forecast Dec. 7th, 2011, Technical Analysis

Light Sweet Crude

CL had a slightly positive session on Tuesday as the markets pushed back against the fall on Monday. The $100 – $103 level is significant resistance, and until we can break the top of the range near $102.50, it doesn’t seem that the markets are likely to breakout above the top. Because of this, we are interested in selling below the lows on Monday, but not willing to buy until we break above the $105 level.

Oil Forecast Dec. 7th, 2011, Technical AnalysisOil Forecast Dec. 7th, 2011, Technical Analysis

Brent

The Brent market had a positive day on Tuesday as the recent range between the $105 level and $112.50 continues to hold. The market is tight at this point, and the most recent range has been even shorter than that. For the immediate future, we see the likelihood of a fall back down to the $105 level as very likely. We think any trading opportunities to the downside will be short-term in nature, as the sideways grind will continue.

Leave a Reply

Your email address will not be published.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