Huge momentum behind oil

TVC:USOIL   CFDs on WTI Crude Oil
Oil hard to oppose here. The downdraft was overdone so the oil price is now compensating upwards looking for fair value, while new news including the first reduction in US production and the first reduction of the US rig count this year is adding coal to the boiler. Bot were announced this week.

Watch for the Chinese Caixin PMI on Sunday 2 July. This will give clear direction for the Asian market. A reading over 50 could turbo charge the upward march.

The banana just gives shape to the tops. Will take special news to take out 49.x

48.3 could also be tough to push through. A thinning of the Ichimoku cloud on the trajectory will encourage bulls to push ahead and create the necessary short covering which has been a big feature of the rise so far.