Oil Technical Analysis for the Week of October 24, 2011

Light Sweet Crude

CL had a fairly choppy week over the last 5 sessions, but still remains under the crucial $90 resistance level. The market has a particularly “range bound” feel to it, and we think the failure on Friday to break out shows that this market will more than likely continue to bounce around in the recent range between $90 – $75. With this in mind, we are keener to sell than buy at the moment.

Brent

The Brent markets looked a bit weak towards the end of the week as it failed to break out above the $115 level, which we have as massive resistance. Add to that the idea that we are seeing a downtrend line holding up as resistance as well, and this market looks like it wants to grind lower again. The range is gradually shifting lower, and we think that trend continues. We would sell on a break lower than the Friday range.