I don't like saying it but oil is primed for a selloff. A lot of shorts have already covered over the last 5 days or so. There are also sure to be profit takers once they see momo slide. On the chart (depending on what is used as the close for oil) the fast sto is over cooked, as well as the full sto. RSI is up near 60. For oil to continue to go up that report tomorrow has to be bullish. API and EIA put out very different numbers often so there is a chance EIA report isn't as bearish as the API report but with this ride up, to keep it up without a pullback that EIA report had better be a complete 180 from this API report.
I see on the trendline that because it has gotten out ahead of itself crude oil can actually drop to about $32.80 and still not fall below the new trendline. That is a pretty big drop that is possible. Then on the Brent side it has also gotten too far out ahead and can drop to $33.70 and still not fall below the trendline. I'm still bullish, but I believe oil really needs a pullback.
Not trying to be a stick in the mud, I'm just trying to keep it real. The media has been doing a lot of pumping since last week and that really started to bother me by yesterday. When I add the media pumping campaign and over-cooked indicators to me it is a flashing sign of caution.
Knowledge + risk taking = prosperity
