Crude Oil Prices December 27, 2012, Technical Analysis

Light Sweet Crude

The light sweet crude markets shot straight up during the session on Wednesday as we broke through the $90.00 level like it wasn’t resistance all. However, we are right in the middle of quite a bit of noise and resistance on the chart, so although the candle looks very strong for the session, it is very difficult to buy this market at the moment.

We see the $94.00 level as being very resistive, and quite a bit of noise below that. With this being the case, we would actually prefer to sell this market if we get some type of bearish resistant candle like a shooting star between here and the $94.00 level. A large red candle would also do the trick, but it must be said that we may not get much at all over the course of the next several sessions. This is simply because the volume won’t be there, and most traders that can truly move the markets will be interested in being involved. With that being said, we think that will eventually help the case for selling a resistant candle as we run into very significant resistance just above. It’s just far too messy to start buying at this point in time.

 

Brent

The Brent markets had a strong showing during the Wednesday session as we smash through the $110.00 level like it wasn’t even there. This area should have been resistive, but was barely a blip on the radar as the markets continue to rise over the course of the trading day.

Looking this chart, we are getting very close to the $112.00 level, which we see as much more significant resistance. It is because of this that is going to be very difficult to buy this contract up here, and as result we will have to wait to see whether or not we get a resistant candle in this general vicinity, or a breakout. This will be based upon the daily candle, and as such we will not be making a trade decision until after today’s session, assuming we get a signal at all.