Crude Oil - Testing important resistance at 34.81
Important resistance at 34.81 is still protecting the rally of the 26.06 low. I continue to favor a break above this important resistance to confirm that an important bottom was seen at the 26.06 low and a rally higher to at least 50.92 is developing.
As long as resistance at 34.81 is able to protect the upside, we must accept more consolidation in the 32.29 - 34.81 area before the bulls has gathered enough force to puch above this resistance for a rally higher. The risk to the bulls is a break below important support at 30.56 that will indicate that the bears still has the upper hand.
The majority of investors, analytics and traders continue to look for lower prices, which got me think about the situation back from 2008, where "Peak Oil" ruled and prices would continue higher to USD 200 a barrel and possibly even higher. I must admit that nobody has ever used the term "Plunge Oil", but it's kind of the same just the invers direction. I still hear numbers like USD 10 or 15 pr. barrel mention. So within 8 years the sentiment has swung from oil wells running dry to too much oil being produced keeping the price of oil continuing lower... forever?
As absured as prices continuing into the skies is the arguments of prices continuing lower. I can't say for sure, at least not yet, the oil has bottomed, but when everybody knows the direction of the oil prices and even worse, when everybody knows the target, it's time to shift side from the bear-camp to the bull-camp as this is where the real opportunity is. (Please see my post from February 12 by clicking here).