Oil: short term view

Oil has starred in some historical moves during the last 14 months. Since its correlation with economy and equities performance is so important, I will do some short term analysis to find more support for the bear or the bull case.

XOI:
Is making lower highs and higher lows so until breaks highs is technically in a consolidation pattern inside a bullish mid term trend.




Close up:
Now it is facing a short term bearish trendline and 200MA wich failed to breach. Stochs favors more weakness. IMO it is due for a pullback to the blue rectangle area before anymore upside.


QM - NYMEX light sweet crude oil future


Edit:
Also check this USO P&F chart from the a great analyst and trader : Valeriobr. Very interesting setup!

http://www.flickr.com/photos/valeriobr/3811528520/sizes/o/