Oil gained $1.35 to $100.85 today to the highest in a week. Oil is retracing after a five dollar fall that began in mid-April.
To me, oil looks weak from here. The economy is sluggish and more supply is coming online every day.
But technically, there isn’t a great reason to sell at the moment. The double top at $105 is still the dominant theme on the chart but there is no resistance until the 55-day moving average at $101.33.
WTI crude – 200dma orange, 100dma red
Yesterday, a hedge fund manager made a convincing case for shorts.
