The Light Sweet Crude markets rose for much of the session on Tuesday, but fell in the later hours to form a shooting star. The candle is formed on top of the $98 level, which has been very supportive lately. The level is one we have been watching, and the longer this market continues to hover around it, the more significant a breakdown would be at this point.

On a daily close below the $98 level, we are short of this market. It can find support in the $94 area, and the $90 below that. The upside isn't possible until we see the market clear the $105 resistance area on a daily close.

Oil

Oil Forecast February 1, 2012, Technical Analysis

Crude Oil Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
93.8233
95.8367
97.2433
99.2567
100.663
102.677
104.083

 Fibonacci
95.8367
97.1431
97.9502
99.2567
100.563
101.370
102.677

 Camarilla
97.7095
98.0230
98.3365
99.2567
98.9635
99.2770
99.5905

 Woodie's
-
95.6850
96.9400
99.1050
100.360
102.525
-

 DeMark's
-
-
99.9600
98.9050
96.5400
-
-