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Crude Oil Prices December 5, 2012, Technical Analysis

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

Light Sweet Crude The light sweet crude markets initially rallied during the Tuesday session, but met quite a bit of resistance at the $90.00 level. This

Crude Oil Prices December 5, 2012, Technical Analysis

Light Sweet Crude

The light sweet crude markets initially rallied during the Tuesday session, but met quite a bit of resistance at the $90.00 level. This was an area that we pointed out during the video for yesterday, and suggested that he could cause a lot of problems for this market. We also suggested that selling in that general vicinity on signs of weakness would be a good thing to do. By the end of the session, we got a nice looking shooting star that shows that $90.00 will in fact be quite a formidable barrier for the buyers to overcome.

Because of this, we are willing to sell this market on a break below the lows for the Tuesday session. As for buying is concerned, we have absolutely no scenario right now where we want to do it unless of course we get some type of shooting war in the Middle East.

Crude Oil Prices December 5, 2012, Technical Analysis
Crude Oil Prices December 5, 2012, Technical Analysis

Brent

The bread markets rose to the one $112 level, but fell from that area during the Tuesday session in order to form what looks somewhat like a shooting star. However, there is a hammer from last week that is holding the market, and we are sitting just at the top of it. Because of this, we don’t necessarily expect any type of meltdown right now, but certainly wouldn’t sell because of the possibility of massive support coming in the marketplace. Essentially, we are very flat of this market.

If we managed to break down below the $108 area in this marketplace, we would be willing to start selling no as it would show a significant breakdown of support. On the other side of the coin, if we managed to get above the $112 level, we would start buying again as it would show strength in this marketplace as well. No matter what happens, we think that volatility is here to stay for the next couple of months, predicated upon the Middle East, the fiscal talks in the United States, and the general lack of demand around the world.

 

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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