Oil Technical Analysis for May 3, 2011

Light Sweet Crude

The CL fell today as the death of Osama Bin Laden seemed to have an effect on the oil markets. The traders around the world quickly realized that he didn’t export much oil, and that it wasn’t going to change the underlying fundamentals of the oil markets. Because of this, the contract fell hard, and then gained most of it back throughout the day. This commodity still looks very bullish at this point, and a break above the day’s high today would be a buy signal.

Brent

Just like its cousin, Brent fell today only to be bought up later in the trading session. The $127 level seems to be ripe for being broke, and now we should see strength return to the markets as the situation in the Middle East hasn’t been changed much by OBL’s death. In fact, the Middle East is more fractured today than at any other time in recent memory. Because of this, the oil markets should remain strong.

(Source: http://www.commoditiesmansion.com/commodities-analysis-video/oil-technical-analysis-for-may-3-2011/)