Oil Technical Analysis for September 8, 2011 |
Light Sweet Crude
The CL contract rose rapidly on Wednesday as traders reacted to the relief of the stock markets as German courts ruled a bailout of Greece wasn’t illegal. This caused a massive relief rally around the world as stocks soared. Compounding that is the fact that several tropical storms are forming in the Atlantic and could threaten oil production out of the Gulf of Mexico for a while. The market stopped just at the $90 mark, an area we have been talking about for some time now. In order to go higher, we need to close above that level on the daily chart. We cannot sell this market currently as the lows are getting higher and higher, signaling strength.
Brent
The Brent markets rose again on Wednesday as well, and even broke above the most recent high, signaling a desire to rise yet again. The $115 level is where we currently sit, so a pullback at this level isn’t a major surprise if it happens, but it should only be viewed as a buying opportunity at this point. We are buyers of dips, and don’t sell this contract at all.
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