Oil prices have been in a trading range, with the upper limits noted with lines a and b. Since the beginning of February, prices have been in a clear uptrend, as marked by line c.
a.) This is a closer look at the upward sloping trend of the last two months.
b.) This area is a distribution area -- a place on the chart where traders who purchased shares at the beginning of the rally distributed them to others who purchased in hopes of higher prices.
c.) After the distribution area, prices gapped higher but hit resistance at the previous highs.
d.) Prices recently formed a downward sloping consolidation area.
a.) The EMA picture is still bullish -- the shorter EMAs are above the longer EMAs, all the EMAs are rising and prices are above the longer EMAs
b.) The MACD is at a crossroads; the signal line is right at the moving average.
c.) Money is still flowing into the market, and has been for some time.
