LIGHT CRUDE OIL

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Followers of Tech Charts who are interested in energy prices would remember my earlier posts on Light Crude Oil in February. I always like to use same templates on price charts while analyzing historical data. Looking at the same indicators puts you in sync with price movements. Band width indicator is a perfect example of repetitive cycles. Analyzing price data with this volatility indicator helped me to forecast strong trend periods on crude oil.

http://techcharts.wordpress.com/2012/02/10/light-crude-oil-3/

Technical conditions are suggesting another strong trend period for oil prices. Given that the price consolidated above 103.75 levels and formed a bullish flag, possibility of an upward spike is higher. In the short-term volatility  will increase. As we always do, we are going to wait for a confirmation of the breakout in one direction. An upward break above 109 levels will push prices towards $115 levels. Strong support is currently standing at $103.75 levels.