Higher Highs in Oil

Oil keeps edging out new relative highs. We have broken past resistance in the 83's and solidly established the 84's. Currently, we are testing 84.75, which was a target set from Fibonacci Extension levels. Our final target remains 85.55. If oil keeps up the bull trend, this should easily be solidified this week. New relative highs are closer together, suggesting that momentum may be running out and it might be time for a technical retracemnt. But there is nothing fundamental to suggest that the rally is letting up any time soon. If we do see a purely technical retracement, then we have levels in the 83's to provide support, then 82.13. If not, our next target is 85.55.