Light Sweet Crude rose for most of the trading session on Tuesday, but pulled back to form a shooting star just under the $102 level. With this candle, it appears that the $102 level will now start to act as resistance. As we noted yesterday, this market looked as if it wanted to rise, but it also looked as if it could become quite choppy. This recent action over the last session does absolutely nothing to dispel that idea. Because of this, we are awaiting a serious breakout or break down of the market in order to get involved. The $104 level is overhead resistance and the $95 level is support below. In the mean time, this market should continue to chop around. We would also consider selling nearer to $104 on weakness and buying closer to $95 on support for a range bound play.
Oil Forecast February 15, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3