Light Sweet Crude markets continue to grind away in the consolidation area that we have been watching for days. The candle for the Thursday session produced a shooting star, and this was just after a hammer. The $98 level still looks like massive support, and as long as we are above that level it is impossible to short this market. However, it is becoming increasingly obvious that the oil markets are struggling with the $104 - $105 area as well. The recent action sees the market grinding lower, but the breakdown won't be complete until sub-$98.

We are looking to go short in this market currently, as the highs continue to get lower. However, until we have closed below $98 - we simply wait. If somehow we close above $105, we would have to reassess the whole situation and buy.

Oil

Oil Forecast January 27, 2012, Technical Analysis

Crude Oil Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
96.4933
97.8567
98.6633
100.0267
100.8333
102.1967
103.0033

 Fibonacci
97.8567
98.6856
99.1977
100.0267
100.8556
101.3677
102.1967

 Camarilla
98.8732
99.0722
99.2711
100.0267
99.6689
99.8678
100.0667

 Woodie's
-
97.7175
98.3850
99.8875
100.5550
102.0575
-

 DeMark's
-
-
100.4300
99.8250
98.2600
-
-