Crude Oil Bounce
Crude Oil has bounced, hard, but will it last? With the 20 and 50 day moving averages converging at 133.66 basis the September, more downside is likely. Of course it won’t be a straight-line loss but the stage is set for a test of the 200 day moving average at 107.34 within the next several session. After 3 days of lower prices Crude Oil was due for a bit of backing and filling but today’s trade has really been a series of lower highs which suggests topside gains may be limited. With weak shorts out, longer term shorts can sell at above $120.