Crude Oil gained after US Stockpile data. An RSI Edge analysis suggests, creation of longs should be deferred without RSI confirmation. On the daily charts RSI is settling near the 60 levels. These levels generally thwart bulls. Price is also nearing a previous swing levels at 64.89 levels.
The RSI on the hourly charts is trading above 80 (this is a bullish sign) , the indicator in these overbought levels are sings of a prospecting correction.
How far this correction carries itself will determine the fate of the oil. A move up from 61.50 – 62.40 can be bullish for oil. A correction beyond 60.90 will require a re assessment of the contract.
Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA