By FX Empire.com
Light Sweet Crude
The CL contract fell during the week as traders continue to worry about a weak US GDP and the problems in the EU. In fact, the main reasons for oil rising has much more to do with problems in the Middle East rather than any actual demand. The $95 level still continues to hold as support, and as long as it does – we can only buy this pair now. The $103 level above should continue to be resistive. In order to sell this market, we need to see $90 violated to the down side. The oil markets will be pushed and pulled between economic reality and Iranian fears, so trading in this market should be for short-term trading only at this point.
Oil Forecast for the Week of Nov. 28th, 2011, Technical Analysis
Brent
Brent markets fell this past week, but are finding the $105 area very supportive. However, if that area were to give way, this could signal much lower levels for this market. The basic driver of buying seems to be worries out of the Middle East and not fundamental buying. The demand curve could continue to weaken as the US GDP was disappointing and the EU is certainly going into recession. The demand simply won’t be there. However, until we break below – we can’t sell. A bounce could be bought for a short-term scalp.
Originally posted here
