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 Forecast January 19, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S1 S2 S3 Pivot R1 R2 R3