Oil Technical Analysis October 14, 2011

Light Sweet Crude

The CL contract had a negative day for the Thursday session as traders took profits after a large move upwards. The market did bounce a bit towards the end of the session though, and this shows how hard this market could fight a fall. However, the highs are getting lower, and this by definition speaks of a downtrend. Keeping this in mind, we are selling on signs of weakness in this market, and aren’t convinced of the bullishness until we can close above the $90 mark on a daily close.

Brent

Brent actually had a positive day on Thursday. The market looks tired, but the fact the green candle was printed is impressive. The market still looks like one we don’t want to be long of, and will look for weakness to sell. The market is going to be influenced by global economies, and with the Chinese announcing a cut of 12% in oil consumption, this is not a good sign. In the mean time, we wait for a sell signal.