Oil the very volatile resource. Multiple reports make it difficult to pick ranges. One report comes out one day the next another different one. Shorts covered just under $ 40.00 to the present. It`s like the herd ran into a wall and had to turn around. One the other end is a cliff above $ 50.00. The current reason for the range is an Oil Glut verses refining fuel draws. We could see a nice trading range from $ 40.00 to the $ 50.00 and back down called a channeling chart. Once established these charts can stay in that range for some time till fundamentals give reason for a direction one way or another.
The amount of money looking for investment has run into a wall with options, this is why we see the interest with oil, natural gas, Gold and Silver. The four safest options available in my opinion. This cause the BETA ( volatility rating )of each high.
A note: It`s about charting right now. When Oil was around $ 50.00 I had mentioned that if it corrected down the price could dip to $ 44.50 and then maybe $ 40.00. That held true. Those were the larger support levels on the chart. If Oil does end up trading from 40 to 50 and back to 40 it presents just what the market likes.
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