Brent Crude Oil March Contract - Forecast for 02/05 by Daytradeideas.com

March Brent looking very overbought and hit profit as expected to test our lower support at 115.27/22 and bottomed almost exactly here at 115.32. The outlook remains weak for today and so further losses are expected with 114.71 our first target. A low for the day here is possible but if we continue to sink look for 114.28/08 as the next level of support. Here we should see a low for the day so worth exiting any shorts and we can try longs wit a stop below 113.80.

Any move to the upside is likely to be short lived with resistance at 115.25/30 the first obstacle but above here we could reach 115.57, possibly 115.92 which could be a good opportunity for shorts. We can add to shorts at 116.36 with a stop above 116.55.

Long term levels

117.95       September 2012 High

117.07       Last Week’s High

113.84       Jan 2013 High

112.25       100 Week Moving Average

112.60       Last Week’s Low

110.90      100 Day Moving Average

108.91      200 Day Moving Average

The article was first published by DayTradeIdeas.com