Oil Technical Analysis October 21, 2011
Light Sweet Crude
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The CL contract fell during the Thursday session, only to bounce again and show some kind of strength at the end of the session. The resulting daily candle was a hammer, which of course is a very bullish sign. However, with the $90 mark being just above – we are hesitant to buy at this level. On the other hand, if we see the bottom of the hammer gets broken past – we would be very bearish at this point. The range should continue to hold between $75 and $90.
Brent
The Brent market fell for a while on the Thursday session, but managed to bounce towards the end of the session. The candle is a hammer, and looks bullish. The market could be bought on a break of the highs from Thursday, but we only see this as a trade – since the $115 mark has been so resistive, we think a trade, and not an investment is the way to go. A breaking of the lows from Thursday would send this market much lower.