Light Sweet Crude
The CL April contract saw bearish movement on Thursday on the NYMEX with prices falling as low as the $100/barrel mark. Of course, we saw a significant bounce at that point, as expected.
You should note that the “Day of Rage” is planned in Saudi Arabia tomorrow and could make this contract go wild on Friday. Same thing can be said for Brent as well.
Technically, we are now caught between the trading range of $100 and $107.50, with the $100 area looking to be strong support. This would be a great place to find a long if we retest it. A break below would be bearish, but with as much support as there appears to be underneath it, a long is preferable. Any break above $107.50 would also signal another run upwards.
Brent
Looking at Brent Crude, you can see the $112.50 area is starting to act very supportive as we bounce between it and $120. We have a similar day in Brent as CL – a drop, and then snap back upwards.
Anything over $120 signals new massive buying. Any break below $112.50 could see us retest $105 as support. However, barring any trouble in the Middle East, this chart looks like it wants to consolidate for the near term.
