Daily Forecast - 08 March 2016
WTI Crude April Contract
WTI Crude bulls are clearly in control but must hold above short term trend line support at 3760/55 to remain in short term control. We are severely overbought, we are in a longer term bear trend & it feels like the squeeze has gone too far but until we see a sell signal we go with the short term trend. The late December/January high is 3828/39 & we should struggle here but further gains test November lows at 3899. We then run in to strong Fibonacci resistance at 3960/65.
Back below 3750 is less positive & risks a slide to 3680/75, perhaps as far as important support at 3650/40. Just be aware that a close below here is negative signalling a false breakout yesterday. Next downside target & support at 3530/20.
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