Crude Oil Prices for the week of December 31, 2012, Technical

Light Sweet Crude

The light sweet crude markets had a bullish week over the last five sessions, and even managed to crack above the $90.00 level. With this in mind, it makes sense that we are possibly heading as high as $94.00, and a break of this week’s candle would in fact signal that move. As for the downside, a return below the $90.00 level would signal continued consolidation down to the $86.00 support area.

Brent

The Brent markets also had a positive week, but did not break above the $112.00 level that we see as massive resistance. Because of this, we feel that the market still consolidating and could fall back down. However, the easiest trade to take would be a breaking of the $112.00 level on at least a daily close. At that point time, we would be more than willing to start buying at that point. A drift below the $110.00 level would have us selling as we figure the market will fall to the $106.00 level to continue with consolidation.