Crude Oil Prices Forecast October 2, 2012, Technical Analysis

The light sweet crude market had a fairly benign session on Monday, as we continue to hover around the $2.50 level, which is the top of the recent consolidation. On the longer-term charts, this area actually forms a hammer, and does of course suggest that we are starting to build support for oil at this point. There is a real chance of this market moves to the upside, but the next couple of days could be difficult as the world awaits the nonfarm payroll report.

We still believe that $90 will continue to offer massive support, and that the $100 level will be a bit of the top. Because of this, overall we prefer to play this is a range bound market. We are certainly closer to the area that we would like to buy at than sell, so we are bullish by nature.