Light Sweet Crude had virtually unchanged in value by the end of the Wednesday session. The recent breakout above the $105 resistance level has kicked off the next leg up in this market, but it looks like a pullback could be coming to allow more buyers to step into the arena that may have originally missed the move.
The $115 mark is still where we believe this contract will go in the end, and as long as there are tensions in the Persian Gulf, this should remain so. The $104 level must hold as support in order for the bullish move to continue. However, in light of all things, we look at any potential pullback as a buying opportunity.
Oil Forecast February 23, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3