Light Sweet Crude fell again for the Tuesday session as the markets are finally starting to cool off a bit. The $105 level was a strong resistance level, and as is the case in classic technical analysis, the level will more than likely be tested as support now. The underlying concerns still remain in the Middle East, and as long as this is the case, the oil market will continue to rise in value over time. The pullback to us is simply an opportunity to buy the contract at a cheaper price. We expect to see the market continue to pullback slightly, and we are looking to buy supportive candles as a result. As long as we are over $105, we are buying.

Oil

Oil Forecast February 29, 2012, Technical Analysis

Crude Oil Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
107.937
108.148
108.267
108.478
108.597
108.808
108.927

 Fibonacci
108.148
108.274
108.352
108.478
108.604
108.682
108.808

 Camarilla
108.294
108.325
108.355
108.478
108.415
108.446
108.476

 Woodie's
-
108.125
108.220
108.455
108.550
108.785
-

 DeMark's
-
-
108.538
108.449
108.208
-
-