Oil Forecast December 16, 2011, Technical Analysis

Light Sweet Crude

CL fell again on Thursday as the oil markets continue their slide. The breaking of the $95 level was significant, and the next move appears to be down – possibly to the $90 level. The demand for oil will certainly be lower as the world enters a slowing down economically, and the markets are finally showing this. We like selling a break of the lows form the Thursday session.

Brent

Brent markets tried to rally on Thursday, but failed. The resulting candle for the day is a shooting star, and a bearish sign to say the least. With this in mind, we are sellers on rallies, and a break of the lows form the Thursday range would have us selling as well. The $100 level looks to be the next stop in this market.