Monday, May 9, 2016

Oil's Weekly Technical Picture Is Improving

Above is a weekly chart of West Texas Intermediate Crude.  The following are important technical developments:

1.) Prices moved above the 10, 20 and 50 day EMA.  These averages will now provide technical support rather than resistance.
2.) While momentum is still negative, it is rising and about to cross over the very important "0" level. 3.) Volume is high.  Volume spiked when prices fell into the mid-20s.  This could represent a selling climax.  Additionally, volume continues to increase as prices climb.
4.) Prices moved through the downward sloping trend line that that connects the mid-2015 and 4Q15 price highs.
5.) Prices remain in an uptrend.