Oil Technical Analysis October 24, 2011

Light Sweet Crude

CL had a bullish day on the Friday session, but pulled back in later hours to form a shooting star for the session. This is a bearish sign, and just under the all-important $90 level as well. This suggests that we are going to fall back into the previous range. The market looks like it could fall if we break the bottom of the Thursday candle, which was a conflicting hammer.

Brent
The Brent markets rose for most of the session on Friday, but fell in later hours. This formed a shooting star, and as a result – a bearish signal. The market is close to the top of the range. The market looks like it is ready to pullback and start to run back to the lower end of the range. We are willing to sell on a break of the bottom of Friday’s range. The $115 level above would have to be broken above, and closed above on the daily chart for us to buy at the moment.