Oil climbed 7% from yesterday’s low to high in reaction to the OPEC cutback news.
More importantly, perhaps, the overnight price action has been well-behaved, near the $47 area. This suggests that after Wednesday’s vertical upmove, oil is building a bull-flag digestion period prior to upside continuation towards a test of the Aug high at $48.75 — in route to a challenge of the June high at $51.67.
After just about every strategist and analyst took to the airwaves with an opinion about the OPEC deal and the prospects for Oil prices — that the deal will fail, and that prices will reverse — it is very impressive technically that oil is perched just off of yesterday’s highs.
This is a warning to the bears that “this time just might be different.”
