LIGHT CRUDE OIL

In my previous post on Light Crude Oil, I wrote about a possible flag formation forming on the price chart. It looks like I was a bit optimistic with my bullish forecast.

http://techcharts.wordpress.com/2012/03/26/light-crude-oil-4/

Price continued lower, broke down the 103.75 support level and reached the lower boundary of the trend channel at 100.8 level. This is the 3rd test of the strong support level at 100.80. In the first trading session after the holiday light crude is testing the strong support and trying to rebound. It is important to note that $98-$100 area is strong support where 100 & 200 day moving averages meet. Light crude oil continues to make higher highs and higher lows. Uptrend should remain intact as long as price holds above the 200 day moving average. In the next few days, we would like to see the price rebounding from the lower boundary of the trend channel to call for more strength.