Oil prices threatening to snap five-day rally - BBH

According to the analysts at BBH, oil is threatening to snap a five-day rally as the May light sweet crude oil futures contract rallied more than a dollar a day over the past three sessions and four of the past five.  

Key Quotes

“Disruptions in Libya and reports that Russia is considering extending its cuts helped fuel the last gains.  We note that the May contract is running into a technical area that may give the bulls a pause.  The 61.8% correction of this year's decline is found near $53.50, which also corresponds to trend line resistance off of the early January and late February highs.  The upper Bollinger Band is just above $53.20.”

“Oil prices have done little to lend support to the US Treasuries.  The 10-year yield currently near 2.33% is six bp below yesterday's high.  Yellen's comments yesterday failed to inspire the bears despite saying nothing to deter the expectations of a June hike.  She did acknowledge that the Fed has a different posture now.  Previously, the Fed was concerned about ensuring the economy was recovering from the financial crisis.  Now it is engaged in trying to extend the expansion.”