Oil Still Strong

Oil has hit our profit target of $116 to the tick, then retraced past our newly identified support level of $113. Currently, it is meandering in the wide vacuum zone between this upper bound and $106. We should see support from $106, but if not, there is no reason to believe that oil will give up the $100's any time soon. The level $116 seems to be providing steep resistance and this is the level we must break before considering higher levels. The Kovach OBV is lackluster despite the recent action, so it could go either way, but there is no fundamental reason to anticipate lower oil prices any time soon.