Distribution (DI - red arrow) into strength (Oil - green arrows), a classic setup for oil, has yet to reach negative concentration. This means probabilities favor continuation not only of the rally but also confusion among the experts trying to explain why.
Chart: Crude Oil (WTI) and Crude Oil Diffusion Index (DI)
Headline: Oil prices jump 10% in a month
Oil prices jumped 10% over the last month on several factors including a Saudi production cut, the fiscal cliff resolution and the reversal of a key pipeline, but analysts expect the gains will be short lived.
U.S. oil prices rose from about $85 a barrel in early December to nearly $94 a barrel late this week. Among the factors pushing up crude:
Source: more
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