By printing below $124, oil has issued a bearish signal on the PnF chart, and formed a double bottom breakdown. Bullish support appears to be at $113 – $114.
It will be interesting to see if it reverses this bearish signal. This would occur at $130, with a double top breakout. However, the weekly momentum has now gone negative.
I would expect it to pullback further from these levels.
Stocks that will benefit from a pullback are names like [[VLO]], [[AA]] and [[DOW]]. Also insurance and integrated financials.
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