The Light Sweet Crude market attempted to rally for the session on Wednesday, but failed to show any amount of follow through later in the session. The $120 level held off the bullishness, and the market is starting to look weak at this point.

The $105 level is massive resistance, and we feel that the area should be a massive one to overcome if the bulls wish to push prices higher. The inability of the markets to continue higher is a poor sign, but the $95 level continues to be very supportive. The area between the two marks has a lot of noise in it, so we are not keen to trade this market yet. We need to see a break out above the $105 level in order to buy, or break below the $95 level to sell. In the mean time, we simply wait.

Oil

Oil Forecast January 19, 2012, Technical Analysis

Crude Oil Pivot Points (Time Frame: 1 Day)

 Name  S1  S2  S3  Pivot  R1  R2  R3

 Classic
100.1200
98.9150
97.8400
101.1950
102.4000
103.4750
104.6800

 Fibonacci
100.3240
99.7860
98.9150
101.1950
102.0660
102.6040
103.4750

 Camarilla
101.1160
100.9070
100.6980
101.1950
101.5340
101.7430
101.9520

 Woodie's
100.1850
98.9475
-
101.2275
102.4650
103.5075
-

 DeMark's
102.9375
-
-
-
100.6575
-
-