By CommoditiesMansion.com
Light Sweet Crude
The CL contract for April today had an extremely bullish move, closing up almost 4 dollars a barrel. As predicted, $97.50 served as support and we have had a bullish bounce up through the $100 mark. Most traders now believe that $100 should be the floor for this commodity. I actually have a support zone between both of those levels. It appears however, that we are heading back towards the highs at $107.50 and will be testing it soon.
If we can manage to close below $97.50, it would be a very bearish move. However this is very unlikely given the recent reaction in the energy markets. For now, all of the momentum has just shifted to the upside.
Brent
As per usual, this contract had a very similar out, as the one mentioned above. We have found $107.50 to be very supportive and have bounce from that level. This is no surprise, as we had predicted this yesterday. However, it appears that we are getting ready to try the $112.50 level which could act as resistance. For now though, it appears that this contract has a very bullish bias in the floor should be at the $107.50 level. No serious sell positions can be taken until we breach that on a daily close. Until then, we should consolidate with an upward bias and a consensus that we will be testing $117.50 before too long.
