Light Sweet Crude
The CL contract had a fairly quiet day on Wednesday as traders continue to argue about whether or not the $100 level is too high for crude or not. The resulting daily candle is a doji, and we are presently sitting just above the $100 mark. The resistance area going up to the $103 level has been significant, and should continue to be so. The volume in the oil pits is fairly light at the moment, and the market could be waiting to see if the EU can come up with some kind of solution to the debt crisis before making a move. Presently, we are very flat of this market.
Oil Forecast Dec. 8th, 2011, Technical Analysis
Brent
Brent markets fell on Wednesday as the market continues to grind away in the vicinity between $107.50 and $110. The market is very quiet presently, and the continued tightening of the price range has been indicative of the uncertainty surrounding the global concerns of economic slowdown. With the recent price action, we believe this market is leaning lower, but we need to see a move below $107.50 in order to short it.
Originally posted here
