Oil Forecast for the Week of March 21, 2011

By CommoditiesMansion.com

Light Sweet Crude (CL)

The CL contract finished the week on a bearish tone as it printed a shooting star on Friday. However, this should be kept in context of what is going on – a massive bull market in oil. The commodity looks like it needs a rest, and it will probably pull back for a few dollars. The real key to continue the bull run will be if we can stay above $95. Above that level and CL is still bullish.

Brent

Brent has been in a massive uptrend for ages now, and is finding these higher prices a bit difficult to maintain. It appears that we are in a consolidation phase, and are treading between $117.50 and $107.50. This should be the case for the short-term, but the market remains bullish in its bias. A break above the $108 range is a sign of continuation of buying. A break below the $107.50 level leads to $105. A break below that level would signal much, much lower prices would be in our future.

More March 21, 2011 Technical Analysis:

• Natural Gas Forecast for the Week of March 21, 2011
• Gold Forecast for the Week of March 21, 2011