Crude Oil Is Due For A Correction

OSX Oil Services Index

Oil stocks as represented by OSX remains on a major sell signal, which is now two years old.

Oil Price

Crude oil remains on a short-term buy signal, but is due for a correction.

COT Crude Oil

COT data indicates that speculation remains at levels of previous tops.

Summary

Oil and energy stocks have been correcting but oil prices remain firm, thus resulting in a divergence that has been in place for a few weeks now. According to current COT data, crude oil is due for a correction; caution is advised.

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