Oil Technical Analysis for May 23, 2011

Light Sweet Crude

The CL retested the $95 area yet again on Friday, and just like every other time recently – the area held as support. This looks like a massive base being carved out in the oil markets, and that the next move could be upwards. Of course, there are no guarantees – but this market looks like it is struggling to go down, and seriously needs to rise. A break of Friday’s highs could send in more buyers.

Brent

Just like its cousin, the Brent markets fell and formed a nice hammer right at support. Because of this we feel that this market has a bullish bias as well. Look for it to follow the CL contract, and buyers will be involved just above the Friday highs. Selling is going to be very difficult as lonas we are above the all-important $105 level.

Source: http://www.commoditiesmansion.com/technical-analysis/oil-technical-analysis-for-may-23-2011/