Oil Tests Relative Highs

13 May 2022

Oil has extended gains, breaking through $106 and currently testing $108. We appear to be feeling out the range between $100 and $108, but there is a bull bias, and the Kovach OBV has picked up notably. If we are able to continue the rally, there is a vacuum zone to $111. We do appear to be facing resistance at the moment, confirmed by some red triangles on the KRI, so beware of a potential retracement, which should find support at $106, but may cross the vacuum zone again down to $101 or $100. The $100's should hold, but if not $95.24 has proven to be reliable floor price.