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

Oil Forecast February 17, 2012, Technical Analysis

Crude Oil Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
99.6867
100.423
101.807
102.543
103.927
104.663
106.047

 Fibonacci
100.423
101.233
101.734
102.543
103.353
103.854
104.663

 Camarilla
102.607
102.801
102.996
102.543
103.384
103.579
103.773

 Woodie's
-
100.585
102.130
102.705
104.250
104.825
-

 DeMark's
-
-
104.295
102.728
102.175
-
-