Oil Technical Analysis for the Week of May 2, 2011

Light Sweet Crude

The CL continues to push higher, and is currently testing the recent highs at the $113-$114 area. Every time this market has pulled back, there has been a buying opportunity. There is nothing on this chart that suggests this will end, as the US dollar is currently falling in value against almost all other currencies and markets. Look to buy on a daily close above $114 and on any supportive action after a pullback.

Brent

Much like the CL contract, COIL continues its march higher, and is currently testing recent highs. The $127 mark seems to be very important, and looks to give way some time in the near future as buying keeps up the momentum unabated. The market has presented buyers with plenty of buying opportunities every time the price has fallen. Because of this, we suggest buying only, and see $120 and the trend line as supportive areas. A close above $127 will also get new buying involved.

(Source: http://www.commoditiesmansion.com/commodities-analysis-video/oil-technical-analysis-for-the-week-of-may-2-2011/)