Oil Forecast for March 15, 2011

By CommoditiesMansion.com

Light Sweet Crude (CL)

The selling seen today was a basic knee-jerk reaction to the news coming out of Japan. In times like these, traders will often sell first, and ask questions later. This is basically what happened on Monday as we found the $100 level supportive. (This is exactly what we were looking for.)

Because of this, a hammer has formed on the daily chart. This is a bullish sign, and a break above the closing price should see the market searching for the $107.50 level, which were recent highs.

A break below the hammer would be very bearish.

Brent

This contract looks very similar to its cousin, the CL contract. It also had panic-driven selling, but found support at our $112.50 level – just as we suggested last week. The shape of the bar is also a hammer, and suggests that we will eventually try to reach $120 again if we break the closing price of the market on Monday.

Again, a break below this hammer is bearish, and has us searching for $105 as support.

More March 15, 2011 Analysis:

• Natural Gas Forecast for March 15, 2011
• Gold Forecast for March 15, 2011