The Light Sweet Crude contract fell for most of the session on Wednesday, but got a nice bounce as the Federal Reserve announced that interest rates were on hold until late 2014 at least. This should continue to put pressure on the US dollar, and as a result it will give a life to commodities. However, there will also come the question of whether or not they saw something that was much worse than originally thought, and because of this - we are still holding firm with our assessment that the $105 level needs to be broken on a daily close in order to buy. A daily close below $98 sends this market much lower, and has us selling. Until then, the oil markets will more than likely be very volatile.
Oil Forecast January 26, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3