Oil Wrestling

It will probably come as no surprise to you but I have “oil wrestled” before. It was back in my youth, circe 1993. I grappled with a 105-lb, exotic dancer from L.A. Can’t really recall if I won or lost, like that matters. I do recall being very greasy when it was over. Oil everywhere. Behind my ears. Between my toes. Everywhere.

But that’s not the type of oil wrestling I mean to discuss. For this thread, I’m wrestling with oil. Crude oil, that is. Specifically, West Texas Intermediate. I mentioned yesterday that crude was looking better but that it needed to best the $104 level before I’d get interested/excited. Well, whaddayaknow? I have a high on the day of $104.54 and a last of $104 even. Upon further inspection, the level to watch was closer to $103.50, anyway, so it looks like crude is headed higher again.

I mention this for two reasons:
1) Its a trade in and of itself. A move from here to 106+ and then on to 110 is significant enough that there is decent money to be made.
2) Crude has been and continues to influence the PMs. Crude continuing to rally will provide the impetus for silver to finally break away from $36. It will help gold move past $1430, too.

So here are your charts. Both look quite bullish. I’d say there is a very high likelihood that crude will be retesting the highs of 3/7 by later this week. First, here’s an hourly chart:

You can see the significance of $103.50 in greater detail on this 4-hour chart:

So, watch crude very closely overnight and tomorrow. Lets see if it can get rolling and drag the PMs with it. TF

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