EIA releases weekly figures tomorrow for oil production, with forecast production at 8.8 million, slightly lower than last week’s 9.622 million, any figure below the forecast I think could give Crude price a big push up in the short term. On the weekly chart price is extremely far away from its Ichimoku cloud, around 51.6% below the cloud. The ADX line still above 60, also giving indications of over sold. In the long term I still see a lot of downward pressure as certain countries, it would seem, are not willing to reduce production in the wake of decreasing price.
If price action on the day chart breaks the Ichimoku cloud on the up side there could be room for a retracement to $60.00 area, a level we haven’t seen since last December.