Light Sweet Crude continues to tread water in the $100 area, and the Thursday session saw very little movement during the day. The market closed down, but not overly so. The candle shape is a bit like a shooting star, and the area just above as been resistance, and should continue to be. The oil markets are currently waiting on resolution in Iran, and Europe for different reasons. However, in the mean time it looks like the market will continue to grind sideways until the situation in Iran finally plays out, or the Europeans finally get their collective act together. The $105 level above is massive resistance, and closing above that area will have us wildly bullish. A breakdown below $95 would be very bearish. We do however; think this is a very tight market that is probably better off being avoided for the next few sessions.
Oil Forecast January 20, 2012, Technical Analysis
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