Light Sweet Crude markets rose during the Thursday session as traders were willing to go out on the risk curve a bit. The down trending channel is currently being tested, but we wouldn't consider it broken until we get a close above the next handle, which happens to be the large and important $100 level. The breaking of that level will more than likely have the market run to the $104 level, and as we approach that level - we will see the real strength, or lack of, in this market.
With the recent price action, we still prefer the sell side, but we need to see the market print a weak candle in the area. The demand for oil simply isn't there, and the move is probably more of an anti-Dollar one than one based upon real fundamentals in the oil markets. We are looking to sell, but only after a failure in the $100 level.
Oil Forecast February 10, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3