March Brent Crude fell back towards 112.55/49 which we stated should provide a good buying opportunity as we look for a low for the day and the low was in fact seen at 112.60. Resistance from last week’s high is at 113.84 also held the topside and we can look to trade this range again while we wait for a breakout.
A break higher in this steady bull run is worth buying in to as we target 114.31/50 to fill a small gap from October. Above 114.72 we could then push on towards 115.91/116.02.
We do have some support at 113.04 today where it may be worth covering at least some shorts but below here we look for another test of 112.60/50 to exit remaining shorts and perhaps try longs. However stops on longs needed below 112.10 for a good buying opportunity at 111.76/66 where we would be attempting longs again with a stop below 111.40.
Long term levels
113.84 Jan 2013 High
112.22 100 Week Moving Average
111.35 Last Week’s Low
110.89 100 Day Moving Average
108.91 200 Day Moving Average
The article was first published by DayTradeIdeas.com