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Crude Oil Prices December 19, 2012, Technical Analysis

By:
Christopher Lewis
Updated: Aug 21, 2015, 01:00 UTC

Light Sweet Crude The light sweet crude markets had a bullish session after pulling back originally during the Tuesday trading hours. We continue to see

Crude Oil Prices December 19, 2012, Technical Analysis

Light Sweet Crude

The light sweet crude markets had a bullish session after pulling back originally during the Tuesday trading hours. We continue to see bullishness in this market up and until the $90.00 level. We believe that the $90.00 level offer far too much resistance for the market to climb back over. However, it isn’t just that the $90.00 level that we see resistance; rather it is the start of significant resistance all the way to the $94.00 handle. Because of this, we think that this market will have a very difficult time rallying for any significant amount.

With this in mind, we are looking for a bearish candle somewhere near the $90.00 level in order to start shorting this market. There are plenty of reasons to think why oil prices could continue to fall, not the least of which is a simple lack of demand. With that in mind, we are looking to sell and are not willing to buy at this point.

Crude Oil Prices December 19, 2012, Technical Analysis
Crude Oil Prices December 19, 2012, Technical Analysis

 

Brent

The Brent markets had a bullish session as well, breaking through the $108.00 level. We look like we are essentially heading back towards the top of the recent consolidation range, and feel that we will make a move towards at least $110.00, if not $112.00 in the near term. However, we see the one $112.00 level being far too resistive for the market to break out.

Based upon the hammer that has formed for the session on Tuesday, we think that buying this market is possible from a short-term perspective. However, we will feel much easier with the idea of shorting this market closer to the $112.00 level. That area is much more resistive than this area is supportive as far as we can tell.

We highly doubt that there will be significant moves in this marketplace between now and the end of the year. Obviously, there can always be a headline shock out there waiting to happen, but in reality the later we get in the year the less liquid the conditions become. Most traders will not want to take the risk of putting on a new position.

 

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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