With a net Friday gain of $0.89 (1.75%) to $51.64, WTIC Oil saw the first outright bullish candle on the weekly cycle since the peak of June 2014. Near/mid term outlook is now bullish.. at least to $60... and probably $67. However, with supply issues not yet addressed.. Oil will not likely break/hold above $75 this year.
WTIC Oil, weekly'2
WTIC Oil, daily
*a VERY significant green candle for Oil on the weekly 'rainbow' chart.
Certainly, I think Oil could drop 2-3% next Monday (to fill a key price gap).. but overall... the mid term trend is now bullish.
To be clear, with supply still too high... I think that whatever multi-week/month up move we see this spring/summer, it should be seen as a bounce/retrace... and not that a key floor has been put in.
I will consider going long Oil next Mon/Tuesday on any weakness... but a more interesting trade later this summer would be a re-short... somewhere in the $67/75 zone.
Goodnight from London
*the weekend update will be on the US monthly indexes