The Light Sweet Crude markets had a fairly benign session on Tuesday as the markets continue to consolidate within the bullish flag pattern that seems to be forming. The overall tone of the market is supportive, and with the problems seen in the Persian Gulf, it is unlikely that any selloff will have a tough time going forward. Until the Iranians stand down, it is unlikely that this market will be able to fall for too long.
The breaking of the top of the flag signals that we are going much higher, and the $110 level will be the first target. The $115 level is the next major one as well, and this is our longer-term target on a move higher. We aren't selling at this point under any circumstances.
Oil Forecast March 14, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3