Oil made new highs around 113.45 on Monday, but quickly fell back into the uptrend channel.
The 105 level held up on option expiration last week. It will become an important support level for this week.
A break under 105 will start a shakeout move, and the price could dip into 102-03 range or lower to retest the lower boundary of the uptrend channel.
As long as the 100 level holds, the uptrend will not be breached. And 96.25 will remain the stop loss for buying side.
This is an excerpt from the Naturus Market Preview for the week. To see the full document, go to http://naturus.com and register.
Oil Daily chart
