Oil Technical Analysis for August 31, 2011
Light Sweet Crude
The CL contract broke directly to the recent highs on Tuesday as traders continue to buy this contract from the recent bottoms. The $90 mark still looms just above, but it looks increasingly likely that the area will give way. The lows are getting higher and higher, and this shows a market that is building pressure to the upside. There are many reasons, perhaps supply…perhaps the anticipated Federal Reserve’s new programs to be announced in September, but they all show higher prices in the future. On a daily close over $90 – we are long.
Unlike Light Sweet Crude, Brent has broken through the overhead resistance, and in fact even ran all the way to the next big figure at $115 on Tuesday. The market looks decidedly bullish, and we are now net buyers of it.