Oil

The January futures price of WTI fell to 88.74 dollars a barrel on the New York Mercantile Exchange after strengthening to the level of $90.30 a barrel on concerns about the budget deficit and talks about the upcoming "financial cliff ".

buy #CL at 87.85 to 70 tp 88.35
but not 100% sure..........

The price of oil futures rebounded today from the low of $87.90 per barrel level which confirmed 1% down fall today as concerns about the economy in general returned oil back into its latest trading range. The January futures price of WTI closed at 88.40 dollars per barrel on the NYMEX.

Oil continues to form the southern Demolition wave from the top of the rising channel, opened the sale, the price broke the 89.00 figure confidently then tested it for resistance and from it again went to the retreat, the main purpose is in 86.10 (the lower boundary of the channel).

“Crude failed to sustain yet another upside break. The rally reversed right at the 38.2% retracement of the decline from the September high (spot). The 10/15 low reinforces the area as one of importance.”

Commodity Trading Strategy: I wrote last week that “I’m uneasy doing anything in this arena other than range trading.” Failure at the top of the range warrants action. Look lower.

LEVELS: 8534 8650 8745 8915 9031 9222

The Oil tried to bounce back to its recent highs after yesterday nasty spill. However, the situation has changed after the report of the U.S. Ministry of Energy showed reduction in crude oil inventories of 2.4 million barrels or 0.6 % to the level of 371.8 million barrels in the week ended by Nov. 30. The analysts expected decrease in stocks by only 1.25 million barrels. The cost of January futures price of WTI fell sharply to 87.46 dollars a barrel on the NYMEX updating the yesterday's low.

Oil movement in the south continues, the price continues to work hang from the top of the channel, there is a converging triangle formation, the price just did retreat from its upper border which made another run at the sale, at the break of 87.70 support will sell more.

Results Clq1nfp oil, after falling from $ 2.3 to Bell the results are disappointing ... In technical terms, but oil is at $ 95.80, where the shoulder neck line to break building has room to drop.

I wrote last update that “Crude failed to sustain yet another upside break. The rally reversed right at the 38.2% retracement of the decline from the September high (spot). The 10/15 low reinforces the area as one of importance.” The selloff has intensified but it’s no guarantee that 8550 gives way. The pattern remains inconclusive. The trend has been down since September and it’s probably best to treat trade since the November low as nothing more than consolidation before additional weakness.

Commodity Trading Strategy: Now nearing the bottom of the range, reward/risk isn’t favorable for new positions. Bearish risk should be moved down to today’s high.

LEVELS: 8363 8454 8534 8681 8745 8821

Crude Oil: sell at 88.800 tp 88.00, 87.25
stop: 89.42