Oil finding a base
3 weeks ago Oil found its lows in the $46-$47 range a close look at the price action since reveals
growing evidence that a rebound is underway. The Daily chart shows the Low on the 12th of January
was a spike low with a high close on high volume. The following days also provided high volume with the
first spike over $50 from the low. The retest of the low was done with small range days showing no real conviction
from the bears.
Recent trading has shown the bears defeated with the retracement yesterday being on lower volume after the
$54 spike high.
Current volumes with the rising RSI now over 50 is showing growing strength in the price.
Gary Burton CFTe