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$OIL: Watching 28.50 for a breakout, with risk below 28.00
Still seeing $OIL pushing the 28.50 resistance after a nice bounce off the lows. Today's close near the high of the day at 28.42 suggests continued upward momentum, but that 28.50 level has been stubborn. If we can get a sustained break above it, a retest of 29.00-29.50 wouldn't surprise me. The key for me is to see follow-through.
Conversely, a failure to break higher, especially if we roll over and close below 28.00, would invalidate this short-term bullish outlook. Below 28.00, it's open to retest the 27.50 area, potentially lower. The intraday range has been fairly tight today (28.1044-28.4498), so a clear move either way would provide more conviction.
2 comments · 50 points
I'm not convinced 28.50 is the make-or-break level here; volume has been pretty anemic on these pushes. A failed breakout could easily see us retesting 27.50 faster than 29.00.