Crude Oil Due for a Pit Stop
Crude gained $2.58 last week to close at 38.50 - on the declining trendline and the 50% retracement of the October decline. My bandwidth indicator has turned down indicating that the rally is long-in-the-tooth. On Friday, crude tested 39.00 which makes the February rally equal to 150% of the January rally; a natural stopping point.
The daily Coppock is overbought warning of a downturn in crude but it is also high enough to characterize it as confirming the high in crude (i.e. higher highs ahead after the next wave down).
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