WTIC Oil - biggest daily gain in over a year

Whilst the main indexes rose around 2.25% today, Oil prices surged by 8%. This is a pretty astounding increase under any 'normal' conditions. Its not like Bernanke just announced QE3, or that Israel is flying nuclear armed bombers over Iran.

An 8% increase in a day makes for one massive move. It will be interesting to see what sort of follow through happens on Monday.


WTIC, daily

WTIC, weekly

Summary

The next key level is arguably the 50day MA around the $90 level, so..there is still a futher $6 to go in this up cycle. Thats another 7% or so.

The weekly cycle though remains a problem for the Oil bulls. We do have an obvious bear flag, and we did see a break below the critical $80 level.

So, the oil bulls need to see $91 hit..a little consolidation..and then a push back over the big $100 level.