Wednesday, May 25, 2011

Thursday Oil Market Analysis

Last week, I wrote the following about the oil market:
So, a move below 96 is a good shorting opportunity. I would wait to go long at levels above 104; there is simply too much traffic below that level to get through to go long before that point.
Nothing has changed in my analysis this week:

Prices are using the 200 day EMA for technical support. The 20 and 50 day EMAs are moving lower, while the 10 day EMA has just moved sideways. Pay particular attention to the MACD, which appears to be ready to give a buy signal.

While I gave 96 as a shorting level least week, this week I would make it the 200 day EMA. In addition, I would still wait until prices moved about the 104 price level as this would get them above technical resistance and through the EMAs.