Crude Oil Prices December 31, 2012, Technical Analysis

Light Sweet Crude

The light sweet crude markets were relatively quiet during the session on Friday, but what is most impressive is the fact that they have simply sat above the $90.00 level after breaking above it on Wednesday. The last two sessions have produced what look like hammers, and as a result a move above $91.50 should send this market looking for $94.00 in relatively short order. Alternately, if we managed to break the bottom of both hammers and close below the $90.00 level, we should see a return to $86.00 as the bottom of the previous consolidation would suggest.

Brent

The Brent markets fell during the session on Friday as the $111.50 level was far too resistive for a third session in a row. We see the $112.00 as the actual resistance level, and as a result need to see a daily close above that in order to start buying. A move below the $110.00 level should see this market return to consolidation though, and at that point time we would be willing to start selling.