Like Argentina’s football team, oil bulls will live to fight another day but after a mediocre performance, confidence is fading.
WTI crude fell to a three-week low $104.60 today after an early rally $106.00 quickly faded. For the second day in a row, crude tested the support line from the March-April downtrend. It held for a second day in a rebound to $105.32 but the inability to mount a stronger rebound will certainly shake the confidence of the bulls.
I have been looking for oil gains but barring a surprise headline from the Middle East, I struggle to see a case for staying long oil.
Lower highs and an inability to bounce from support.
