After reaching the lowest levels since 2003 ($27.56) WTI crude oil futures rallied ~26% in 7 trading sessions:
WTI Crude Oil (Daily)
This week’s rally stopped right at the downtrend drawn from the November peak and previous support from December – crude oil faces a huge test next week after rallying nearly 5% on record weekly volume
Not surprisingly this brisk rally comes as non-commercial futures traders (large speculators, traders, and hedge funds) have amassed the largest short position in crude oil futures on record:
Last week’s volume in crude futures was off the charts, however, until price can leap above previous support and the falling 50-day simple moving average near ~$36 the rally will remain guilty until proven innocent…
WTI Crude Oil (Weekly)
