Oil Returns to Relative Highs

Oil has continued its rally, breaking through our level at $111 with ease. It is currently facing resistance in the middle of the vacuum zone between $111 and $116. The Kovach OBV has picked up sharply with the rally, but has since leveled off. We have few fundamental reasons why we should see lower oil prices, however if we do retrace, we should have support at $111, $108, then $106 in the event of a retracement. Otherwise, $116 remains our target, then $122.