With the recent tensions in the Middle East, it really isn't much of a surprise that oil prices have been rising. The Thursday session originally saw a dip, but then bounced to form a hammer. The hammer itself shows just how much momentum is starting to build up in the oil markets.
The break of $105 is our signal to go long, and a daily close above that mark will have us long of this market. The market is still in consolidation until then, so we are watching the area for signs of either weakness to sell, or a surge to buy. At this point in time, we are simply going to wait until we see the reaction to this mark. Given the hammer that formed, at the moment one would have to think that the bulls have the upper hand at the moment.
Oil Forecast February 17, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3