marctomarket.com / by Marc Chandler / Oct 17, 2016
The price of oil has risen more than 20% over the past month. It is being driven by ideas that OPEC (and Russia) may implement a freeze or an output cut at the end of next month. At the same time, US crude stocks trended lower.
The market has discounted good news, but the news stream has turned. Momentum players may still managed to lift prices to marginal new highs above last week $51.60 high basis the November light sweet crude contract, but the risk is that the larger move comes to the downside.
The Slow Stochastics have already rolled over, and the MACDs are poised to cross lower in the coming days. The RSI is elevated but is flat for the third session, warning that momentum is flagging.