WTI crude breaks the opening spike highs

Technical Analysis

Keep an eye on crude

WTI is up $8.50 to $63.30. The market seems to be indicating that the US is getting ready to strike back. WTI is up 15.4% on the day.

The earlier high was $63.34 but it came in very thin trade right at the market open. It was undoubtedly driven by short-covering. Now those shorts have had a chance to cover and the market is finding fresh legs.

I’m surprised at the level of strength. This is one of the best days for US crude ever.

Update: After the spike, oil has slipped back to $62.80. Looks like it might have been a hunt for stops, or that the highs attracted some fresh sellers/hedgers.


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