Thursday, January 28, 2016

Oil Trading: Well That Was Interesting

Following up on yesterday's "Oil Prices Rebound on Smaller-than-feared Crude Build--UPDATED":
...Futures  $31.77 up 32 cents.
For what it's worth, a move to that $34.00-$34.50 range would cause so much pain to remaining shorts that there might be some overshoot as the margin clerks take control of the trading, which would set up a dandy spot to short and contemplate the fact that the southern islands boast as many shades of blue as Ireland has green....
Here's today's action via FinViz:

That spike got to $34.82. Luck, pure luck. $33.26 up 96 cents last.
So where to next?
I have no clue although the daily charts show the support that failed around $39-40 in late December would pose serious resistance should we get there:

And on the other hand (you knew there was an "other hand" didn't you) despite all the talk of production cutbacks this market is, as the old-timers used to say, well supplied.