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Published on 15 May 2017
The
WTI Crude Oil market rallied on Monday, showing signs of strength as we
tried to go to the $50 handle. However, the move was based upon the
idea of Russia and Saudi Arabia suggesting that more production cuts
needed in the oil markets might be coming. That of course is bullish for
price, but the reality is that production cuts have not held up longer
term. Because of this, I believe that the move is probably short-lived.
You will notice on the chart that the 61.8% Fibonacci retracement level,
the large round number, and of course the 200-day moving average have
all conspired to keep prices lower. I’m not willing to short yet, but
I’m thinking about doing it on signs of exhaustion.
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