Oil Technical Analysis for June 17, 2011

By CommoditiesMansion.com

Light Sweet Crude

The CL contract had a bearish day on Thursday, but still sits right at support. It has to be said that after the Wednesday sell off, one would have expected a bit of a bounce. It never came. Because of this, although we are at support, we are getting more and more bearish on oil. If we can break below the $94 level, we would have to start thinking about shorting this market. This of course would be based upon price action for the day as well. For now – we recommend staying flat.

Brent

The Brent market fell on Thursday, as traders sold off commodities in general. The Brent contract sits at support again in the form of $117.50, and it appears that we are going to test it. The truth is, the contract looks bullish – but the CL looks very weak. Something has to give as the two almost always march in lockstep with each other. For now, we are neutral until the spread (difference in price between the contracts) makes up its mind on which direction to go.

Originally posted here

Find more information about technical analysis, fundamental analysis and news on CommoditiesMansion.com.

About CommoditiesMansion.com:
The Finance Mansion Network operates global financial websites including www.CommoditiesMansion.com. Our goal is to provide our readers with the most quality, accurate and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com, www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion.com and many more.