Crude Oil is making a strong move, breaking through its 2009 high and reaching nearly $82 per barrel. We think the trends driving this recent surge (since mid-December) were due to colder than expected weather across the Eastern US combined with signs the economy continues to improve.
Crude Oil Price Graph
From a counter trend point of view, we urge you to look at this graph:
Technical Indicator on Crude: 15-day rate of change
It shows the 15 day ROC (rate of change) of Crude. When this number approaches near 20%, Crude has typically shown a pullback of approximately 8.5% lasting anywhere from a few days to a few weeks. Look for a more attractive entry point to Crude near $85 per barrel.
The Covert Analytics Team