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Oil Can't Catch a Lasting Bid
While the S&P indices flirt with various incarnations of the 1800 level, I still find it fascinating that NYMEX Crude Oil cannot seem to catch a lasting bid despite an 18% decline since its August high at $112.24.
Let's notice that each of three rally efforts this week has failed to climb above $94.50, while a more important resistance zone at $95.40 resides thereafter. This must be hurdled to trigger a meaningful near-term upside reversal signal.
Usually on Fridays, ahead of the weekend, traders cover their short positions in crude oil to move of harm's way of geopolitical event risk. The last time oil climbed into a Friday close was October 18, from $100.60 to $101.40.
Based on the look of the enclosed hourly chart pattern, oil is poised to sell off this afternoon. Only a climb above $94.50/55 matters to the otherwise still bearish technical set-up.
