Watching For A Bounce Long In Oil

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Like many people, I've been looking
for a bounce play in oil, but given the
amount of government manipulation,
I haven't been over aggressive.

We got a Friday afternoon pop of over 7%
on relatively low volume to retest $48 resistance.
This was probably a short squeeze after a full
10 trading days of lower highs. In other words,
a lot of people covered their shorts once the
selling pressure slowed around $46 support.

Monday will be the real test to see if this is going
to be the start of a significant rebound or just another
failed bounce for lower oil prices.

Penafian

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