Oil

Commodity Analysis: Recent inside days near the midpoint of the range since late October may signal basing before crude makes another bull run. The rally from last Wednesday’s low is impulsive and does warrant a constructive view against Tuesday’s low (8616).

Commodity Trading Strategy: Look higher against 8616 towards the top of the recent range.

LEVELS: 8404 8500 8616 8850 8976 9029

The Oil fell against the background of today's meeting of finance ministers in Brussels and the opening the "fiscal cliff” theme in the United States. The January futures price of WTI fell to 87.25 dollars a barrel on the NYMEX giving back all won position against the U.S. dollar on last Friday.

The lOil market fell slightly during the session on Monday, and we currently sit just below the $80.00 level. With this being said, we think that there is a significant amount resistance all the way up to the $92.00 handle above, and as such we are not interested in buying crude at this point.

The demand for crude oil has definitely been shrinking over time, and one of the few bullish driving forces behind it has been the conflicts in the Middle East. As these conflicts seem to cool down, with the exception of perhaps Syria, we should see oil prices start to drift lower. We are interested in selling this market, but do not see the set up presently. Anything below the $84.00 level would have us very short of this market, and rallies are to be sold that show signs of weakness

Oil on the hourly chart has formed a converging triangle, the lower boundary of this figure is made up of medium-sloping level of support is likely to be broken is its northern boundary, with the strengthening of which opened up the purchase, then open the way to 89.60, the South is not considered.

Oil market looks a little bit weak at the moment, and the fact that the Israelis and Hamas have their potential or, this has made a lot of the “risk premium” come out of the oil market.

It technically speaking, it does look like we are heading down to the $84.00 level eventually. We are looking for some type of rally to short at this point that shows signs of weakening. With this in mind, we are not ready to place our trade yet, but do see potential the short any signs of strength in this market. If we managed to get below $84.00, we think this market could fall as low as $78.00 in relatively short order.

The Oil continued its second day of decline dropping on New York trading session amid forecasts of increasing of U.S Crude oil reserves and fears that a bailout plan for Greece could be disrupted. The January price of WTI futures fell to 86.81 dollars per barrel today.

Oil $88 level offered too much resistance for the buyers. However, we see quite a bit of support down to the $84.00 level and as such would not be shorting at this point. If you are short the market already, that’s one thing. However, if you are talking about getting into it now, that is completely different. We see the potential for supportive action in this general vicinity, and as such we are currently waiting for break down below $84, or a rally that we can fade that shows some type of weakness. It isn’t until we clear the $92 level that we feel strongly enough about buying in order to do so.

The price of WTI Oil rebounded from the lows of 85.36, the lowest level since November 16 after the Energy Department report showed that the supplies unexpectedly fell last week. According to data in the U.S. Crude oil the amount of Oil in inventories fell by 0.347 million barrels with expected increase by 0.317 million barrels. The WTI managed to move up to 86.76 dollars a barrel on the NYMEX.

Oil also has a very interesting location, in the last few hours the price has grown, there is a great probability of a southern correction, price now come to an inclined medium level around which have significant activity bears on it and I expect to start the descent.

Oil Receives Minor Boost Following US Inventories Report

After falling by close to $1.50 a barrel to reach as low as $85.70 during European trading yesterday, the price of oil was able to stage a slight upward recovery following a lower than expected US Crude Oil inventories figure. US stockpiles fell by 300,000 barrels last week in a sign that demand has gone up. As a result, crude was able to bounce back to the $86.40 level during afternoon trading.

Today, oil traders will want to pay attention to the US Prelim GDP, Unemployment Claims and Pending Home Sales figures. Should any of the news come in above analyst expectations, speculations that demand for oil will go up may drive the price of oil higher.