Oil Forecast December 16, 2011, Technical Analysis

Light Sweet Crude

CL fell again on Thursday as the oil markets continue their slide. The breaking of the $95 level was significant, and the next move appears to be down – possibly to the $90 level. The demand for oil will certainly be lower as the world enters a slowing down economically, and the markets are finally showing this. We like selling a break of the lows form the Thursday session.

Oil Forecast December 16, 2011, Technical Analysis
Oil Forecast December 16, 2011, Technical Analysis

Brent

Brent markets tried to rally on Thursday, but failed. The resulting candle for the day is a shooting star, and a bearish sign to say the least. With this in mind, we are sellers on rallies, and a break of the lows form the Thursday range would have us selling as well. The $100 level looks to be the next stop in this market.

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