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 Forecast February 29, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3