Oil Solidifies Value just Under $80

11 Jan 2022

Oil has slid from the 80's, dipping all the way to our level at 77.56, before recovering. We have made a run for $80 again, falling just short of this level confirmed by a red triangle on the KRI. We have felt out lows, at 77.56, and this might be the bottom of a new value area forming between 77.56 and 80.00. If so, expect oil to remain range-bound here. The Kovach OBV has gradually rescinded from highs, and has bottomed out, which may suggest a divergence with the current attempt at 80.00, another factor suggesting 80.00 is an upper bound for now.