Light Sweet Crude
CL fell on Monday as the markets continued to struggle with the $100 level. The oil markets have seen several attempts at the area, and the $103 level seems to be the uppermost point of resistance now. The breaking above that area is what it will take in order for us to feel safe in buying this contract. In the mean time, we feel the down channel will more than likely hold. This could lead to selling opportunities on a break of the bottom of the Friday hammer.
Oil Forecast January 3, 2012, Technical Analysis
Brent
Brent had an almost completely flat day on Monday as the markets are still trying to pick up volume form the holidays. Not all traders are back yet, and as a result there might be a few slow days ahead in this market. The market has been a grind lately, but with a slightly bearish flavor to it. Because of this, we prefer to sell this market the closer we get to $112 as it has been resistive lately. Until we get a close above the $112.50 level, it will continue to be range bound.
Originally posted here
