It's remarkable that oil has managed to hold its Jan.-Feb. Coil Support Line in the aftermath of two huge builds in the inventory data.
However that said, I keep thinking that Saudi Arabia (and OPEC) are under the market on every $2-$3 decline to preserve the integrity of "The Agreement" and also to support prices into the Saudi Aramco public offering later this year.
Whether or not there's any truth to my suspicions, the fact remains that for the time being, the high-level Coil-Digestion Formation remains intact and viable. And as long as that is the case, the overall setup in oil is bullish, in a holding pattern awaiting upside continuation to $56 and then to $61.
Only a reversal and break below $51.22-$50.71 support will wreck the set-up.
