Oil Technical Analysis for the Week of October 31, 2011

Light Sweet Crude

CL had a massively bullish week over the last 5 session, and gained roughly 6% in the process. The Friday session saw some cooling off, but after the run up, this was certainly welcomed. The market looks massively bullish, and we think that the $100 mark will be tested soon. In fact, the $95 level seems to be the only real resistance between here and there. We won’t sell at this point, the price action is simply too strong for that.

Brent

The Brent market had a much choppier week. The area of the $112.50 level is proving to be very resistive, and it seems that the market is still in a bit of a downward channel on the longer-term charts. The $112.50 level is at the top of that range, so we aren’t ready to buy Brent until it closes decisively above that level. To be quite frank, we see a lot of resistance between this area and $120 as well. We simply are selling, but only if we get a bit of a break down. Otherwise, we are flat in this market for now.