Oil ran up like crazy due to the unrest in Libya. Recently the bullish sentiment level for oil has almost reached the level of those days before the July 2008 price peaks.

That time the oil price declined 78% over five months after sentiment topped out.

This time the price may not repeat that move. The price could go higher if it manages to break 104-05 range, which is the 61% retracement from the low 33.175 in 2009 to the 2008 peak at 147.30. 

The 93.135 and 90.80 have both become support levels with stop loss 89.60 for short-term swing long positions.

Nat’s mid-winter half-price sale ends Monday at midnight. And then its gone for another year. Here’s the link for more info: http://naturus.com/half.html

Oil Daily chart

022511-4-OIL.jpg