Oil Breaks Higher

6 May 2022

Oil has been edging up, first breaking through $106, then $108. The latter has consistently been an upper bound for oil, but just yesterday it was finally able to crack this level. We broke out but topped off at $111 or so, just under our next target at $113. We are registering resistance confirmed by red triangles on the KRI. However the Kovach OBV appears very strong, and oil seems to be holding its ground above $108, which should provide support. If not, we have $106 just below, then there is a vacuum zone down to $101. There is no reason to expect that we won't hold the $100's. Another burst of momentum could take us back to $113, then relative highs at $116.