No Love at the Pumps

Oil has picked up, testing relative highs. We seem to be having trouble reestablishing the $120's, with $119 being the upper bound for now. The Kovach OBV has picked up, but does not seem sufficient to indicate a significant rally to hit relative highs at $122. In fact, we are looking a bit top heavy so anticipate a retracement back to support at $116, $113, or $111. Any retracement should be considered purely technical and we have no reason to believe that oil will give up the $100's any time soon. Our next target is $122 if momentum reignites.