RE: Oil almost looks like it's trying to consolidaWe can argue this in circles (support level) - everyone thought $100 was support, then $80, then.. OH MY... $50 (not one person in the finance industry whom I spoke with believed Oil would fall back to $50). We need more time to see if Oil holds convincingly above $40. If Oil breaks and heads towards $30, then the new consensus might be support at $30. Why such even numbers?
It's evident that psychology plays a huge role, but it's all perception. If Oil ever hits $25, then when will you feel comfortable going long... $15? I'm not comfortable at all with $40 as THE support level. It's looked good the past couple of days. If the markets start a good healthy rally, then I will be more convinced that $40 could be the bottom.. for now.... the market ("the force") wants it to go higher, and after this past week's activity, it seems that any *hint* of positive info will move Oil through $50 in a hurry, even if the overall fundamentals remain bearish.
C-man