For a while now technical analysis on Oil has been pretty much meaningless, but now that we are off of the extreme lows, it looks like oil is going to be trending around in a range between the high 30's and high 40's for a while now.
There are a few levels that can prove interesting (60-61 to name one), it looks like the market is going to begin to de-correlate so heavily with oil, not that it won't be influenced, but every time someone on the news utters the word oil, we aret going to see crazy bursts of volatility.
Keep an eye on the news, such as the OPEC meeting next month, but now is a good time to start thinking about when and how to time entries into oil related trades.
Comments
tbuckle
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It looks like 22 days ago you were calling for a continued sell off in oil. Now you are calling for upside from here?? Do explain, if you don't mind.
SDMarik
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Not calling for an upside per se, calling more for some sideways action for awhile. I still think we will see a sell off again before we start a rally. Same idea as 22 days ago long term, just different timing.
SDMarik
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I also said it is a good time to start thinking about some trade entries on oil, does not necessarily mean they have to be long positions. Market conditions changed a bit over the last month, but I still think we have quite a while before a real rally