Oil Breaks Thru 100 Today

Oil now printing 101.55.  Using the USO as a proxy for WTIC oil (blue) and BNO for Brent Oil (green), the ticker that moves away the furthest from the zero line is the one that has to come back the most. In this case, note how USO dances around the zero line now but Brent remains up in nosebleed territory so Brent should come down more in price relatively. Note the rising wedges which marked the top in late April then a bearish pattern ever since, lower lows and lower highs, until both have now moved above the higher high indicating a preference for price basing.

Brent OIl had a fire lit under it when the Libyan War started. Thus, some premium should work its way back out. Projection would be sideways movement in WTIC 95-105 while Brent Oil will trend down in price. WTIC should take a pull back here from this pop today, but the weekly chart shows some sustained price in this area, then the charts should line up to take it lower in the coming weeks. In relative terms, Brent Oil should fall in price more on a percentage basis as compared to WTIC Oil moving forward. This information is for educational and entertainment purposes only. Do not invest based on anyhting you read or view here.  Consult your financial advisor befoe making any investment decision.