Crude Oil Prices for the week of December 17, 2012, Technical Analysis

The light sweet crude markets had a slightly positive week over the last five sessions as the $84.00 level continues to offer enough support to keep the market somewhat buoyant. However, we think that we are simply bouncing around because it’s the end of the year. Simply put, the volume will draw enough in this marketplace that we could be stuck in this range for the next two weeks. We still think rallies are to be sold, and that the $90.00 level will be far too resistive for the market to stay above for any length of time. If we can get a bounce that area, it would represent a selling opportunity to us. On the other hand, if we managed to break down below the $84.00 level on a daily close, we would be sellers as well.