On the chart of Oil below we are about to go into the area were most consider overbought (above 70) on the RSI for the first time since 2008. I find this to be extremely significant and a harbinger of much higher prices in the immediate future and I demand this type of RSI action in the stocks I trade. We’ve been stuck in the 20-60 range for over 2 years and while the chart has moved up, it took an awful long time to get there.
Another secondary indicator that is confirming this move is the +d1, combined with an up-sloping ADX. Very bullish. If you want the trifecta, look no further than the commanding breakout over the 50% Fibonacci level from the chart collapse.
In an earlier post I was thinking out loud about a potential target for the Nasdaq and then I came across this chart that I annotated a few weeks ago. I’d say the 2500 level is just as good as any place to plant my flag.
