Oil U.S. Light Crude Futures ($57.50)

For the third time since late 2004 we have snuggled down to the 200-Day Moving Average while in a corrective phase in a strong underlying uptrend. On both earlier occasions we briefly pushed below the 200-Day MA before recovering.

My work suggests that the long term outlook remains constructive, but the short term corrective phase is not yet over. I have adjusted my short term downside price target back to the area of $55/bbl.