Oil Sells Off, Hits Our Targets

Oil has finally taken a breather off profit taking and a build in US oil inventories. A wick topped out at our target at 87.21 and we sold off sharply from there, smashing through several levels in the 84 and 83 handle, where we finally found support at 83.21, the exact level we noted in yesterday's report. We appear to be recovering nicely, attempting to establish value around 83.76. The Kovach OBV has registered the selloff, arching down sharply from its bull run over the past week. There is a vacuum zone below to 82.13, so if the selloff continues, this will be the first target. After that, we have 81.30 and 80.70 as the next targets for support. If we are able to reestablish momentum, then 84.75, and 85.55 are the next targets above.