Brent Crude Oil March Contract - Forecast for 02/06 by Daytradeideas.com

March Brent held above 114.71 and unexpectedly broke 115.92 continuing higher through 116.55 to reach 117.23. However we have not managed a close above last week’s high of 117.07 and could see a drift lower to 116.14 now. The market looks very over bought so a break lower is possible for 115.50/40 but good support here could hold the downside. Any longs will need a stop below 114.90 for 114.40/25 as the next support area.

117.07/23 is resistance but a break through here targets 2012 second half highs at 117.95. With the market so overbought this should hold the top side and offer a selling opportunity but stops needed above 118.40. We could then stretch to 119.80/120.00.

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