The explosion aboard a Mariner Energy Inc. oil platform shows President Barack Obama should maintain the drilling ban imposed after the BP Plc blowout in April, lawmakers and environmentalists said. The blast and fire in the Gulf of Mexico yesterday 'is further proof that offshore drilling is an inherently dangerous practice,' Senator Frank Lautenberg, a New Jersey Democrat, said in a statement. Obama halted deep-water exploration after BP's Macondo well exploded, killing 11 workers and causing the biggest U.S. oil spill.

Trading Tactics

A clear downtrend could be an opportunity to sell Crude Oil.

A buying point is at 76.50; previous resistance is the take profit at 78.00; Fibonacci 61.8% is the stop loss at 74.30

A selling point is at 74.69; Fibonacci 23.6% is the take profit at 72.00; previous resistance is the stop loss at 76.40

Technical: Crude oil fails to break the previous resistance level and may continue the minor downtrend. A move back lower could set up a test of 72.00

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line downwards; Momentum and RSI (Relative Strength Index) are in a downtrend; Stochastic oscillator crosses %D line downwards.

*Analysis is for information purposes only and does not constitute advice in any form. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.