By FXEmpire.com - Commodities predictions; Technical analysis for Oil using graphs & indicators Friday - March 30, 2012.
Lets see the Oil forecast March 30, 2012.
The Light Sweet Crude markets fell hard on Thursday as talk found its way around the marketplace of a potential release of the Strategic Oil Reserves by Britain, the US, and possibly France. The release of course floods the markets with extra crude, but let us not forget how the last attempt by the US to bring prices down by doing this ended up – back to pre-release prices in just 7 trading sessions.
The market sliced through the $104 level that we have been watching as support for so long. This has us out of all of our long positions at this point in time, as it looks like this move could have a bit of momentum behind it. However, knowing how these types of moves don’t last long, we are already thinking of buying this market again in the near future.
Essentially, we need the release to happen. Once it is proven true, the market will fall again. This could very well be a knee-jerk reaction like last time, and with this market comes a plethora of reasons to buy the commodity, and a release of a couple of week’s worth of oil will not change them.
The market simply has far too many support levels below, and the market is in a definite uptrend. With that being said, there are a couple of obvious levels from where we would be interested in buying. The $100 level is one place that we could see supportive action in this market, and if we do – we would be buying at that point. Below that, we see the $94 – $95 level as being massively supportive as well, and would become very aggressive at that point as it looks a bit like a “line in the sand” for the bulls. The market will have changed tone quite drastically if this level gets broken to the downside, and it is because of that we like buying from there. It essentially becomes a binary equation at that point – either we go up or down from $95. However, we may not get below $100 and have to recognize that it could cause a bounce as well.
[Originally Posted Here]