Crude Oil Forecast March 28, 2014, Technical Analysis

Light Sweet Crude

The light sweet crude markets rose during the session on Thursday, showing strength after the $100 level was cleared on Wednesday. Because of this, we feel that this market will continue to grind its way higher, but we do expect a little bit of trouble at the $102.50 level. Going forward, we expect a bit of a challenge, but ultimately this market will find its way to the $104.50 level, and then beyond there.

Any pullback at this point time should be a buying opportunity as is market has clearly broken out from the downside. Nonetheless, just because of the noise above we believe that there will be pullbacks from time to time. That being the case, we believe that there should be plenty of buying opportunities on short-term charts. We also believe that there is a significant amount of support at the $99 level, which of course should continue to keep this market somewhat afloat.

Brent

The Brent market rose as well, breaking above the $107.50 level, showing that we have in fact broken out of bed, and have cleared a certain amount of resistance. This resistance giving away of course is a very positive sign, and we believe that the market should ultimately find its way to the $112 level. By doing so, this sets up a marketplace that should continue to be bought every time we pullback, using smaller time frames. The market has been very bullish of the last couple of sessions, but there is a significant amount of noise above that could in fact make this a market that you can go to time and time again. Ultimately, we do believe that this market will break out to the upside and as a result offer quite a bit of profitability for those who can play the shorter-term charts. As long as you are essentially in a “buy only” mode, you should do quite well over time. Selling is not a serious thought at this point in time, and as a result being patient will be the way to go going forward.