Light Sweet Crude markets fell during the session on Wednesday as the markets continue to struggle with direction in this area. The $105 level above is still massive resistance, and the $100 level below seems to be very supportive. The demand for oil is actually quite low, but the Iranians are saber rattling in the Middle East, and this always will put a bit of a bid in on the markets.
The movement in this market is getting extremely tight, and as such it has been a scalper’s market over the last several days. The $105 simply must be broken and closed above on the daily chart for us to get bullish again. Alternatively, the selling of this contract is going to be almost impossible until we see a daily close below the $100 mark, as it seems to attract so many bids. In the mean time, we simply are staying away from this market.
Oil Forecast January 12th, 2012, Technical Analysis
Originally posted here
