Oil Technical Analysis October 25, 2011
Light Sweet Crude
Your capital is at risk
CL exploded to the upside on Monday as traders dumped the Dollar across the board. The market looks like it has broken out, and we should now see an attempt to reach the $100 mark. The breakout is significant, but could be derailed by news out of the EU on Wednesday. Remember, if the markets don’t like the solution for Europe, it will sell assets first, and ask questions later. Because of this, we are bullish, and willing to buy on a break of the Monday highs, but are going to be a little tighter with our stops than usual.
Brent
Brent had a positive day on Monday as the aforementioned scene played out in most commodity markets. The Dollar is on the back foot around the globe, and the Brent market gets bought up as a result. The candle on Monday almost broke above the shooting star formed on Friday. If the top of the range on Friday gets broken, this could be a massively bullish sign. We are willing to buy on a break of that shooting star.