Oil Retraces, But Long Term Momentum Still Strong

Oil has retraced a bit further after a sharp rejection from highs. This is a reasonable technical retracement, bound to happen after such a prolific rally from the low 80's within less than month. We are seeing support at 88.74, confirmed by a green triangle on the KRI. The Kovach OBV is still strong, but has leveled off. This is another sign that the price action we are seeing is likely a corrective impulse and not a reversal. In the event of the latter, we would see the Kovach OBV dip sharply, registering strong bear momentum. If current levels don't hold, 87.21 is the next target, then 85.55. If momentum picks up, then we should be able to reestablish the 90's, with 90.06 being the first target.