Oil Technical Analysis for the Week of October 17, 2011
Light Sweet Crude
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The CL had a strong day on Friday, capping off a very positive week for the market. The area above is still resistive, but this is showing that over the long haul, this market will be very resistant to falling quickly. Until we can get a daily close above $90 though, we are not totally convinced. If we get that – we would become buyers again. The area above would be a perfect spot to look for exhaustive candles.
The Brent markets absolutely skyrocketed this week, and are racing towards the $115 area at the time of this writing. The next major spot is the $115 level, as it was the recent high before the last fall. If we can get above it, this would show a turn in the trend and we could become long-term believers. The inability to close above it on a daily close would have us bearish as it would show the down trend is still intact.