Oil Forecast for the Week of December 5th, 2011, Technical Analysis

Light Sweet Crude

The CL contract has a bullish week as traders finally got back to the $100 mark, and even have managed to stay there. The $103 level above looks to be resistive, so the next couple of Dollars in this market are going to be tough and important for future direction. The buying of this contract can’t be condoned at these lofty levels now as the act would simply be “chasing the trade”, but buying pullback could be the way to go, especially if we can get down to the $95 support level.

Oil Forecast for the Week of December 5th, 2011, Technical Analysis Oil Forecast for the Week of December 5th, 2011, Technical Analysis

Brent

Brent had a bearish week in the sense that it could not keep its gains by the end of the session on Friday. The pair has given back a large portion of gains from the week, and looks set to fall back to the bottom of the trading range to $105. The market looks like it wants to be consolidative between $105 and $112.50 for the moment, and we are treating it as a scalping or day trading market because of it.

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