Despite the recent pull back, short-term trend in Oil remains bullish according to the Ichimoku cloud indicator in the 4 hour chart. Price remains above the cloud. Recently we had a sign of weakness as price broke below the kijun-sen (yellow line indicator) and the Chikou span (black line indicator) below the candlestick pattern. As long as price rmeains above the cloud, trend remains bullish.
In the Daily chart we saw price produce a bullish signal when it broke above the Kumo (cloud) and is now back testing cloud support from above. Price is now bouncing off the cloud support and the tenkan-sen. The Chikou span is above the candlestick pattern (bullish) and the tenkan-sen is above the kijun-sen. Yesterday's lows around $73.85 provide key short-term support. Bulls do not want to see price break below this level. A break below yesterday's lows will increase chances of a deeper pull back.
