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Light Sweet Crude
The CL sat right at the $97.50 area, which we suspected would be support today. Because of this, the support is between that mark and $95 is still in play, and should be helpful for buyers. If we could possibly break down, the $95 and $90 marks will give sellers issues as well.
For now, it looks as if the market wants to bounce between the $95 and $100 a barrel prices.
Brent
If the CL looks supportive, then the Brent market looks outright bullish. The Wednesday bar looks very bullish and is sitting on support at $107.50. The interesting thing about this is that Brent seems to lead the CL contract quite often. If we hold support at $107.50, we should see a move back towards the highs at $117.50 – $120 a barrel until proven differently.
If we break down, there will be $105 and $100 waiting to support prices. An upward bias is certainly in play at the moment and patience is suggested for trading as buying is the only real position you can take at the moment.
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More March 17, 2011 Technical Analysis:
