Crude Oil Prices December 21, 2012, Technical Analysis

Light Sweet Crude

The light sweet crude market rose during the session, but still struggles with the $90.00 level after the Thursday trading hours. It appears that we are trying to break into the resistance area just above, but we think this will be too strong of a barrier for the buyers to take out.

Looking at this chart, it appears that we are starting to get a significant base, but the demand simply isn’t there for oil right now. This could be more or less the fact that the volumes are getting a little less liquid, as we are approaching the very end of the year.

However, you have to always understand that there is potential for a headline shock to come across the newswires to move the price of oil. All things being equal, this chart does look somewhat bullish, but that resistance above should keep a lid on prices, and we actually are waiting for some type of resistant candle in order to start selling again.

The Brent markets had a slightly positive showing during the session as we continue to try and plow through the $110.00 level. Just above that is the $112.00 level that is massively resistive and I do not believe that we will managed to break through and between now and the end of the year. Granted, just as stated above there is always the possibility of some type of headline shock could send prices straight up, but unless something flares up in the Middle East, it seems unlikely for this to happen.

In fact, we are looking for some type of resistant candle between here and that $112.00 level to start selling this market as well. The trend is down, and it looks like are trying to go sideways overall right now between the $105.00 level, and the $112.00 level. As far as buying is concerned, we are not interested right now as we are far too close to the resistance and far too far above the support in order to feel comfortable doing so.