Oil Closing In On $110 Support Level

Oil has been trading in $10 ranges for some time now. Before it broke above $100, oil bounced back and forth between the high $80s and high $90s. After moving above $100, it traded up to $110 and then back down to the $100 support level twice before eventually breaking above $110. Once it moved above $110, it quickly traded up to $120 before once again pulling back. Today's declines in the commodity have pulled it back down to just under $111. The $110 level should act as support here just as $100 did before. If $110 doesn't hold, oil will be in danger of breaking the uptrend that formed from the double bottom made in February.