Supply cuts sends the price higher.
The price of the WTI Crude oil contract is pushing against the $32 a barrel as I type and the headlines say that the price is up 20% since the low (they use the Feb contract low). Of course it is down a whole lot more as evident from the daily chart below.
The chart below shows the fall and the rise. And although the move higher today - after the fall earlier in the day - is impressive, the price is still below the highs from yesterday and Friday. So there is room to roam still. The 50% of the move down from December has also not been reached at $33.54 and the 50 day MA is way up at $38.36.
There is reason to cheer. There is reason to think there is more to come, but traders are going on the hope of a cut. So there will need to be some further talk and perhaps some action. It nevertheless, is a reminder to shorts, that the price can indeed bounce.
