Oil Retraces But Fundamentals are Still Bullish

Oil has topped out just below our profit target of 132. Subsequently, it retraced to the 120's, currently finding support at 120 exactly which might be a new technical level forming. The Kovach OBV is still strong, but does appear to be arching over slightly. The US has committed to banning Russian oil imports, which will not ease the soaring price of oil, unless Biden can find alternative sources. It is likely we will feel out current levels, before testing highs again. We should have support from 116 then 110. The next target is 132.