Crude Oil Forecast Jan. 16, 2012, Fundamental Analysis

Crude Oil Forecast Jan. 16, 2012, Fundamental Analysis
Crude Oil Forecast Jan. 16, 2012, Fundamental Analysis
Crude oil prices dropped as the USD gained strength after markets turned pessimistic on reports came out lately showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.

Knowing that investors moved towards low yielding assets with European stocks snapping the gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources, and that overshadowed the upbeat Uni. of Michigan Confidence index.

Now, eyes will be spotted the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.

The outlook for crude oil prices remains generally to the downside, as persistent fears from the EU debt crisis and signs global growth is slowing are likely to keep crude oil prices under pressure, where traders will also continue to monitor the developments from the 17-bloc euro nation and the European leaders’ latest moves to contain the debt crisis.

NZD/USD Forecast Jan. 16, 2012, Fundamental Analysis

NZD/USD Forecast Jan. 16, 2012, Fundamental Analysis
NZD/USD Forecast Jan. 16, 2012, Fundamental Analysis
The NZD/USD pair advanced last week, where the New Zealand dollar was the biggest winner against the greenback, as risk appetite increased slightly and provided more confidence to investors yet on Friday it all went to waste with the return of jitters over the euro area’s outlook and imminent downgrades.

The ongoing debt crisis in the euro-zone dominated the market sentiment, where the current move in the NZD/USD pair could be a correction, since the main trend still to the downside and likely to return if the fears and news that France lost its top AAA rating are confirmed from France which could be the bearish catalyst for the market this week..

Also the Chinese economy will release its GDP data for the fourth quarter during the week, where the growth data will have its toll on the NZD/USD pair since China is number one trade partner for New Zealand.

On Monday, the New Zealand economy will release the REINZ Housing Price Index for December, where the previous reading was 3304.3, while the REINZ Housing Price Index had a prior reading of 1.1%.

Gold Forecast Jan. 16, 2012, Fundamental Analysis

Gold Forecast Jan. 16, 2012, Fundamental Analysis
Gold Forecast Jan. 16, 2012, Fundamental Analysis
Gold prices declined on Friday as the USD gained strength after markets turned pessimistic on reports came out lately showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.

Knowing that investors moved towards low yielding assets with European stocks snapping the gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources, and that overshadowed the upbeat Uni. of Michigan Confidence index.

Now, eyes will be spotted on this year, and the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.

Accordingly, we should expect more fluctuations for gold, but should the current pessimism persist, we should expect gold prices to extend the rallies, however, the level of uncertainty is very high, and investors are ought to remain cautious.

Natural Gas Forecast Jan. 16, 2012, Fundamental Analysis

Natural gas prices declined on Friday, as forecasts pridicts milder weather across much of the U.S through late January, affecting demand for the furnace fuel.

Traders will continue to focus on weather developments, where weather forecasts suggest temperatures will be likely lower than average over the coming period, and that could put natural gas between gains and losses in next period.

GBP/USD Forecast Jan. 16, 2012, Fundamental Analysis

GBP/USD Forecast Jan. 16, 2012, Fundamental Analysis
GBP/USD Forecast Jan. 16, 2012, Fundamental Analysis
Sterling is about to start a critical week with heavy important data from the United Kingdom yet the start on Monday is light with lack of data from both nations leaving the GBP/USD subject to more volatility and likely losses as the sentiment returned pessimistic and risk averse after news that France lost its top credit rating.

The market was hit hard on Friday and sterling extended the weekly losses on news that S&P downgraded France and likely Austria while Germany was safe, all reports were not confirmed with the end of the European session on Friday yet the market saw that the possibility is high to be seen as soon as this week and surely Fitch’s assurances that France was unlikely to lose the rating is now a lost cause.

On Monday we expect the volatility to extend and the losses to be seen with the lack of fundamentals leaving the eyes on the debt crisis and if the downgrades are confirmed. The volatility will extend with auctions scheduled for the day from the euro area and that might see the end of the stability at the bond market and last week’s good auction run with haven demand all favoring the dollar to extend the gains versus sterling.

USD/CHF Forecast Jan. 16, 2012, Fundamental Analysis

USD/CHF Forecast Jan. 16, 2012, Fundamental Analysis
USD/CHF Forecast Jan. 16, 2012, Fundamental Analysis
The haven demand returned strongly with the end of last week as Friday saw the dollar compensating for the entire week’s losses and also regained its grounds versus the Swiss franc.

On Monday the Swiss data is of little importance as the focus remains on rating agencies and whether news reports that S&P downgraded France and possible other nations are confirmed by the agency or not and that will be the bullish catalyst for the dollar likely for the entire week if seen.

The EU debt crisis returns to be center stage as attempts for markets to stabilize clearly fail and that will keep haven demand favored for the dollar over other currencies and accordingly pressure the pair more to the upside.

The Swiss economy will start the week at 08:15 GMT with the Producer & Import Prices for December after the 0.8% drop recorded the previous month and 2.4% decline on the year,

EUR/CHF Forecast Jan. 16, 2012, Fundamental Analysis

EUR/CHF Forecast Jan. 16, 2012, Fundamental Analysis
EUR/CHF Forecast Jan. 16, 2012, Fundamental Analysis
The euro ended last week with losses versus the franc that was already trading higher on fears the SNB lost is arch franc defender after after Hildebrand’s unexpected resignation.

The news hit the euro hard on Friday and extended the EUR/CHF losses that S&P downgraded France and likely Austria while Germany was safe, all reports were not confirmed with the end of the European session on Friday yet the market saw that the possibility is high to be seen as soon as this week and surely Fitch’s assurances that France was unlikely to lose the rating is now a lost cause.

On Monday we expect the volatility to extend and the losses to be seen with the lack of fundamentals leaving the eyes on the debt crisis and if the downgrades are confirmed. The volatility will extend with auctions scheduled for the day and that might see the end of the stability at the bond market and last week’s good auction run.

The Swiss economy will start the week at 08:15 GMT with the Producer & Import Prices for December after the 0.8% drop recorded the previous month and 2.4% decline on the year,

Auctions:

10:00 GMT Slovakia sells bills

10:30 GMT Netherlands sell bills

14:00 GMT France to sells bills

EUR/USD Forecast Jan. 16, 2012, Fundamental Analysis

EUR/USD Forecast Jan. 16, 2012, Fundamental Analysis
EUR/USD Forecast Jan. 16, 2012, Fundamental Analysis
The EUR/USD slumped sharply on Friday to surrender the gains set in the week to the dollar on news that France lost its top credit rating according to the French TV.

The news hit the market hard that S&P downgraded France and likely Austria while Germany was safe, all reports were not confirmed with the end of the European session on Friday yet the market saw that the possibility is high to be seen as soon as this week and surely Fitch’s assurances that France was unlikely to lose the rating is now a lost cause.

On Monday we expect the volatility to extend and the losses to be seen with the lack of fundamentals leaving the eyes on the debt crisis and if the downgrades are confirmed. The volatility will extend with auctions scheduled for the day and that might see the end of the stability at the bond market and last week’s good auction run.

Auctions:

10:00 GMT Slovakia sells bills

10:30 GMT Netherlands sell bills

14:00 GMT France to sells bills

USD/CAD Forecast Jan. 16, 2012, Fundamental Analysis

USD/CAD Forecast Jan. 16, 2012, Fundamental Analysis
USD/CAD Forecast Jan. 16, 2012, Fundamental Analysis
The USD/CAD pair inclined as the USD gained strength after markets turned pessimistic on reports came out lately showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.

Knowing that investors moved towards low yielding assets with European stocks snapping the gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources, and that overshadowed the upbeat Uni. of Michigan Confidence index.

The USD/CAD pair could still rise if pessimism continues to dominate markets, as uncertainty remains the main theme in markets, and that could also lead to deep fluctuations for the USD/CAD pair.

Monday January 16:

Canada will have no data released on Monday, noting that Monday will be holiday for US economy as January 16 is Martin Luther King Day, so eyes will be focused on Europe and the crisis that could cause any change in trading.

AUD/USD Forecast Jan. 16, 2012, Fundamental Analysis

AUD/USD Forecast Jan. 16, 2012, Fundamental Analysis
AUD/USD Forecast Jan. 16, 2012, Fundamental Analysis
The AUD/USD pair soared last week after the US dollar dropped against other majors, nevertheless, the losses returned for the pair with the sentiment reversal on Friday as news reports said that S&P downgraded France according to government sources.

The current week has important data from the Australian economy, where the unemployment rate is expected to hold steady at 5.3% and any change in the employment sector will be faced by a strong reacted from the Aussie, as it could affect the next decision from the RBA.

Also the Chinese economy will release its GDP data for the fourth quarter during the week, where the growth data will have its toll on the AUD/USD pair since China is number one trade partner for Australia.

On Monday at 00:30 GMT, Australian will issue the Home Loans for November, where the previous reading was 0.7% and it’s expected to come at 1.0%.

EUR/CHF Fundamental Analysis January 16, 2012, Forecast

Economic Event

Jan. 16

03:15

CHF

PPI (MoM)

 

Historical

Highest: 1.5193 CHF on 10 Oct 2009.

Average: 1.3271 CHF over this period.

Lowest: 1.026 CHF on 10 Aug 2011.

The CHF move is likely a reaction by the market to test “the will” of the SNB without a leader in place. The EURCHF has been moving down since SNBs Hildebrands resignation as SNB head after the scandal from his wife’s questionable currency trades. The pair moved below the 1.2100 level today which is getting closer and closer to the 1.2000 pegged floor. This is also the lowest level since September 20th. Leader or no leader I have to think that the central bank will operate as expected and support the level they set.

Support:              1.216

Resistance:         1.2085

Trend:                   Flat/Sideways

 

Not much action was expected today, but with the fall of the euro against all currencies we see the CHF moving up against the Euro.

The market closed at 2012 Jan 13 7:35 GMT 1.2182

Monday we should see the CHF surge against the Euro in early morning trading as the euro continues to drop of the downgrades announced by S&P

GBP/USD Fundamental Analysis January 16, 2012, Forecast

Economic Events

Jan. 16

19:01

GBP

Nationwide Consumer Confidence

 

Highest: 1.681 USD on 17 Nov 2009.

Average: 1.5807 USD over this period.

Lowest: 1.4321 USD on 19 May 2010.

Rule:

GBP/USD: While the ranges are wider (and so should stops be), the lines are rather distinctive, especially towards the borders of the long term wide range. This pair makes for good trades, with the new austerity program implemented in the UK, the GBP is moving more on Fundementals now. Easy to trade against the USD.

Support:              1.549

Resistance:         1.5325

Current Trend: flat / sideways

At the close of London markets 2012 Jan 13 7:39 GMT  the GBP is trading 1.53903

News this week effecting the Sterling

The latest announcements by U.K. officials referred that the outlook for the British economy will depend on the latest developments in the euro area, thus the pound is expected to be affected by euro zone news and data.

The Italian Treasury sold 9 billion euros of 179-day bills, where the demand increased to 1.7 times, compared to 1.47 times in the last auction while the borrowing cost retreated to 3.251% from the previous auction’s rate of 6.504%. Also, 2013 bills were sold for 1.733 billion euros with a yield of 4.853% from the prior auction’s rate of 7.814%.

On Thursday, the U.S. economy will release initial jobless claims for the week ended Dec. 24 and continuing claims for the week ended Dec. 16 at 13:30 GMT. At 14:45 GMT, Chicago purchasing manager is estimated to retreat to 60.2 in Dec. from the previous 62.6. 15 minutes later, pending home sales for Nov. will signal 1.8% advance compared with the preceding 10.4% rise.

The data is expected to affect the pair’s movements yet eyes will be on the selling of 2014, 2018, 2021 and 2022 bills by the Italian Treasury, especially the 10-year notes which recorded a yield of nearly 7% in the last auction, a rate which triggered the ask for a bailout by Greece and Portugal.

With mounting expectations the BoE will add to stimulus as early as in 2012, the pound remains under pressure from expected oversupply.

This just announced, S&P has officially notified the French government of a downgrade and will be contacting other EU governments.

This move will add support to the Sterling and help push it up against its foreign counterparts. We should see a strong opening Monday.

USD/CHF Fundamental Analysis January 16, 2012, Forecast

Economic Events

Jan. 16

03:15

CHF

PPI (MoM)

 

Historical

Highest: 1.1664 CHF on 07 Jun 2010.

Average: 0.9699 CHF over this period.

Lowest: 0.7224 CHF on 09 Aug 2011.

Rules:

USD/CHF: The pair tends to break to an all-time low, then range back to the previous low. The ranges are very distinct. A break to the upside will likely meet another previous low. Pair are reliable.

The late breaking story affecting the currency markets is the S&P potential downgrades of many european countries including France. Towards the closing of the European Markets, a spokesman, said that France had been notified of a downgrade, but no details have been given and no verification.

The Swiss Franc should remain strong against all EU currencies, and there should be upswing in the USD as more investors move to safe haven currencies.

Right now, we are looking at points of support at 93.65 and resistance at 95.00. With a downward trend.

The USD/CHF is at,  2012 Jan 13 7:36 GMT 094.159 at the close of the european session.

Markets Tumble on European Downgrade Reports

Markets Tumble on European Downgrade Reports
Markets Tumble on European Downgrade Reports
Markets turned pessimistic today erasing early gains, as reports came out lately today showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.

Knowing that investors moved towards low yielding assets with European stocks snapping the gains, the euro turning lower and European stocks surrendering earlier gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources.

And that overshadowed the upbeat Uni. of Michigan Confidence index. In Europe, CAC 40 dropped nearly 0.3%, while DAX declined by 0.74%, on the other hand, in America, the Dow Jones slipped by 0.67%, and the S&P 500 index dropped by 0.73%.

In Currencies market, the euro slipped heavily against USD trading around $1.2677 compared with opening levels at $1.2813, as demand for higher yielding assets decreased, while the pound dropped trading at $1.5294.

The USD gained momentum today after declining earlier trading around the 81.47 level, while the USD/YEN pair inclined to trade at 76.91. The AUD/USD pair dropped trading around the 1.0295, where gold declined trading around $1637.00, and oil also slipped trading at $98.82.

EUR/GBP Fundamental Analysis January 16, 2012, Forecast

Economic Events

Jan. 16

02:00

EUR

German WPI (MoM)

 

04:00

EUR

Italian Trade Balance

 

19:01

GBP

Nationwide Consumer Confidence

Highest: 1.2336 EUR on 29 Jun 2010.

Average: 1.1548 EUR over this period.

Lowest: 1.0686 EUR on 13 Oct 2009.

Rule:

EUR/GBP: The cross tends to move in ranges, with relatively clear barriers. The narrower ranges made it somewhat harder, but it seems to return to wider ranges. The GBP is does not seem to move in response to the EUR as directly currently. The UK austerity program vs. The EU debt crisis seems to have them moving in opposing distances. They are developing new trading personalities and there is a good deal of profit to be made trading this pair. They can be volatile.

Resistance :                        .839

Support:                              .8325

EUR/GBP             2012 Jan 13 7:33 GMT     .83616

The euro continues to drop against the sterling. A lot is based on the S&P downgrade rumors. 

EUR/USD Fundamental Analysis January 16, 2012, Forecast

Economic Events

Jan. 16

02:00

EUR

German WPI (MoM)

 

04:00

EUR

Italian Trade Balance

 

Background:

Out of the major currency pairs the most popular and easy to trade currency pair is the EUR/USD. It has become so popular with traders these days that even when there is no visible trade to be had it is yet traded as a matter of habit. This is of course something that should be avoided and any investor who trades this currency pair wisely can do so successfully with sizable profits at the end of the day.

The first thing with trading currencies is to realize that the EUR/USD is made up of two separate currencies although considered to be one unit when taken as a pair. The weaknesses and strengths of each currency have to be taken into consideration when trading the unit as it influences the final outcome. Another factor that is often overlooked by traders or investors is that the weakening of one currency along with the strengthening of the other currency in the pair results in the generation of pips. It is according to this that entry and exit from the Forex market has to be done in order to maintain profitability.

Trading comprises of careful market studying, strategizing, planning and executing the plan in a timely manner. This is entirely different to scalping which is resorted to by many a trader on a regular basis. These traders are often clueless as to the market situation and just use this as a type of defense mechanism to compensate for the general lack of information and knowledge. The EUR/USD is a currency pair that certainly offers a lot of currencies trading opportunities if handled correctly.

Highest: 1.5091 USD on 03 Dec 2009.

Average: 1.3709 USD over this period.

Lowest: 1.19 USD on 07 Jun 2010.

EUR/USD started the year with a nice rise but met resistance at the 1.3060 was all downhill from there.

1.3085 was the top border of a very narrow range that characterized the pair towards the end of 2011. It also provided support back in December 2010 and had a pivotal role.

The round number of 1.30 is psychologically important and also worked as some support. After the breakdown, it was shattered. The relatively new low of 1.2945 is still important, and now as clear resistance. If market rumors turn to reality, these points of support and resistance will be trampled by panic.

Today’s rumors or soon to be truths, about downgrades by S&P have pushed the euro down. As European ma

Next week, this point will be of great importance as the Euro continues to sink 1.2520is another support line, before the round number of 1.24, which was of importance a long time ago.

1.2330  and 1.2144 are two points that we are reaching quickly, more discussion will be added if the Euro continues its drop on Monday.

Todays rumors or soon to be truths, about downgrades by S&P have pushed the euro down. As European markets close, we find the euro at 1.2679

Monday morning should find the euro strong against the dollar, as shortsellers exit the market driving up the price of the euro. Depending on the outcome of the s&P reports, the euro may continue to sink throughout the day, but an early morning spike is probable.

Rumors Circulating on S&P Downgrades cause World Markets to Drop

Fresh rumors are circulating this morning regarding sovereign downgrades. Standard and Poor’s is denying the story that they are circulating documents amongst European Countries informing them of the downgrades before making the news public.

The euro is plummeting in regards to the rumors, trading now at 1.2699 from 1.2814 at the close last night.

The Wall Street Journal  is reporting citing European Union sources that Standard & Poor’s could move as early as Friday to downgrade euro-zone countries.

EU markets are plummeting in response with the Stoxx 600 index down 0.5%

U.S. stocks opened sharply lower on Friday on reports of coming downgrades of euro-zone nations by rating agency Standard & Poor’s. “With the likelihood of an S&P credit downgrade of France, Spain, Italy, Belgium and Portugal, it’s important to understand that number one, they are just following what the markets have priced in and number two, Fitch and Moody’s in some circumstances have already moved ahead of S&P.

The Dow Jones Industrial Average  fell 98.01 points to 12,373.01. The S&P 500 lost 9.65 points to 1,285.85. The Nasdaq Composite Index declined 17.95 points to 2,706.75.  The Wall Street Journal quoted European Union sources as saying rating agency Standard & Poor’s could downgrade euro-zone states as soon as Friday. Europe stocks fell across the board.

One government official familiar with the matter said an S&P notice is being circulated among euro-zone governments and that an announcement “could be imminent.”

S&P declined to comment on the possibility of an imminent announcement on euro-zone credit ratings. S&P had placed 15 euro-zone countries on negative credit watch on Dec. 5.

The Dax dropped to 6135 down almost 1% on the news. In France the CAC has plummetted almost 1% since the news circulated.

Gold Continues to Glitter

Gold futures climbed for a third day and continue to rise for a 4th,  to settle at an almost month-high on a combination of a softer U.S. dollar and safe-haven flows in response to the ECB  warning of “substantial” downside risks for the euro zone’s outlook.

Gold for February delivery reached $8.10, or 0.5%, to close at $1,647.70 an ounce on the Comex division of the New York Mercantile Exchange.

The dollar’s retreat sparked more demand for the precious metal as a weaker greenback makes gold more affordable.

The absence of any push or news to drive buyers to gold is affecting both demand and price.

Gold ended at a record $1,891.90 an ounce this past August on news of additional quantitative easing from the Federal Reserve reached a fever pitch. But gold is down about 15% since then, closing Thursday at $1,647.70 an ounce. Prices fell 10% in December alone. The Fed has been backing off of any direct action as the US economy is showing slow improvement.

The shiny metal managed a 10% gain for 2011, much better than the Standard & Poor’s 500-stock index, which finished the year flat on a price basis.

Investors have cut gold positions over the past year. Holdings in SPDR Gold Trust, the largest exchange-traded fund backed by gold, offer a good picture of the fund liquidation that has taken place in recent months.

The ETF’s gold holdings have remained around 1,250 metric tons for most of December and so far this year, but that’s still a 2.4% decrease from December 2010, when the fund had 1,281 metric tons. Holdings jumped 13% in 2010.

Gold investors have seen no signs that the Fed will ease anytime soon, while the euro zone debt crisis has taken the euro down several notches to a 16 month low.

European headlines still impact gold futures, to be sure, but increasingly the metal has traded on U.S. dollar moves. It would take huge problems in the EU to drive the price of gold, but any changes in China or the Middle East or continued problems with Iran.

While buyers are likely to see their gold holdings rise in value for a 12th consecutive year, any advance is expected to be more modest than in recent years.

Minimum returns from gold would test short-term traders who need volatility and profit from gold purchases. Yet those who own gold as a long-term answer to currency concerns and for portfolio diversification could find their patience is rewarded. Investing in gold-related companies is also a reemerging trend. Gold will remain a safe haven and a sure thing in turbulent times.

Optimism on Eased Worries Over Europe; Focus on Italy’s Auction, US Data

Markets turned positive today after Italy’s and Spain’s bond yields fell yesterday following the strong bond auctions, while ECB’s president Mario Draghi said there are “tentative signs of stabilization”, easing worries over the debt crisis.

Demand on the higher yielding assets increased today as in the US the consumer confidence is expected to rise to a 7-month high while Italy is expected to witness strong demand on the 4.75 billion euros of bonds it will sell today.

In Asia stocks rose to a one month high as sentiment improved as European policy makers are expected to start keeping the debt crisis under control, therefore Nikkei 225 rose 1.36% while Hang Seng rose 0.57%.

In Europe stocks rose as the euro is buoyant on eased worries over Europe which gave support to the commodities as well. DAX gained as of this writing 0.59% while CAC 40 gained 0.75%.

Data today may show that the US consumer confidence rose in Jan. to 71.5, the highest in 7 months. In Europe data may show the trade balance may see deficit in Nov., while in UK the PPI fell in Dec.

As the risks on the global economic outlook eased with Europe expected to start keeping the debt crisis under control, the euro gained trading around 1.2825, while the pound is around 1.5350.

The dollar index is weakening trading around 80.75, while the yen was higher trading around 76.70. The AUD rose today trading around 1.0350. Gold however fell today trading around $1640.30.

Oil recovered some of the sharp losses seen yesterday after Europe said it will delay the restrictions on oil imports from Iran for about 6 months. Crude is now trading with bullish momentum around the $99.55 level.

Oil Forecast January 13th, 2012, Technical Analysis

Light Sweet Crude rose initially during the session on Thursday as the bullish pressure looked set to continue into the day. However, as the afternoon part of the US session came into focus, the Western allies decided to put off a potential embargo on Iranian oil by six months. In other words, the West caved in. The failure of any backbone regarding the threats of punishing the Iranian nuclear program certainly will give the markets some relief in the short term. However, one has to wonder how long it will be before the Iranians butt heads with Europe and the United States again.

With that in mind, we can’t help but feel that the Iranians will certainly continue to factor into the headlines for the oil markets, but in the immediate future it looks like serious trouble has been averted. The ability for one nation to stand up to the rest of the world will certainly rear its head again in the future, and we will always have to pay attention to it.

The pair eventually fell, and even managed a sub-$100 close. This was our signal to sell at this point, and we feel this market will fall now. Certainly, there isn’t enough demand out there to justify the pricing, and with Iran on the back burner, the market should find some relief. However, it seems unlikely we will see a massive selloff, and we are expecting the $95 and certainly the $90 levels to provide support going forward.

The buying of this contract is almost impossible to do at this level, and the Friday session will more than likely produce more selling, provided nobody does anything stupid on the political front. (Not always guaranteed!) However, if we can break above the $105 level, we would be buyers on a daily close. A break below the session low for Thursday has us short of this market, but we are only looking for a $4 gain or so as the bulls will certainly find another reason to step in and support this market.

Oil Forecast January 13th, 2012, Technical Analysis
Oil Forecast January 13th, 2012, Technical Analysis