Light Sweet Crude traded up on light volume during the US session, as it was the Martin Luther King Jr. holiday in the States. The volume most certainly fell off in the US hours as a result, and the true move for the week will come on Tuesday. The market still sits below the $105, and the support below that appears to be at the $95 level. The area between the two levels could very well be the range of consolidation going forward as the world still will have to wait to see how the situation in Iran ends. In the mean time, we feel this market is a scalper's one and we would look to buy close to $95 on supportive candles, and willing to sell closer to $105 on weak ones.
Oil Forecast January 17, 2012, Technical Analysis