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Oil So Far Withstands Huge Inventory Builds. What Now?
It is remarkable that Oil has managed to hold its Jan-Feb Coil Support Line in the aftermath of two huge builds in the inventory data.
That said, however, I keep thinking that Saudi Arabia (and OPEC) are under the market on every $2-$3 decline to preserve the integrity of "The Agreement" and also to support prices into the Saudi-Aramco public offering later this year.
Whether or not there is any truth to my suspicions, the fact remains that for the time being, the high-level Coil-Digestion Formation remains intact and viable, and as long as that is the case, the overall set-up in Oil is bullish, and in a holding pattern awaiting upside continuation to $56.00 and then to $61.00.
Only a reversal and break below $51.22-$50.71 support will wreck the set-up.
