West Texas Crude Oil (WTI) is currently trading near $64/barrel, and appears to be breaking out of a bullish flag.
Oil has cleared chart resistance in the $63 area, and there is little overhead above current prices.
With the break of $63, WTI has completed a large base that goes back to the end of 2014.
Longer term, I’m still worried by the extremely bearish Commitment of Traders (COT) data, which is now massively bearish. There is also excessive speculation in the market and sentiment is also a concern as we are now seeing excessive optimism.
But so far, this rally has ignored the COT data and excessive speculation and sentiment.
As long as $62 holds, I will stay moderately bullish here.
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The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
