Oil Forecast December 19, 2011, Technical Analysis

Light Sweet Crude

The CL contract found support in the $92.50 level on Friday, an area that is minor support. The market has been sold off hard over the last several sessions and a bounce looks ready to come. However, as the move recently has been so decisive, we are now looking for rallies to sell. Until we get back above the $105 level – this will be our strategy.

Brent

The Brent markets found a bit of support again on Friday as the daily bar formed a doji. However, the Thursday candle was a shooting star, and the session on Friday will have triggered sell signals for many traders. The breaking below looks very weak, and we are willing to sell rallies at this point.