What is behind the crude oil bounce? Carley Garner on TD Ameritrade to discuss.
It isn't a coincidence that WTI crude oil futures and the US dollar index simultaneously find themselves at a major crossroads; these assets are negatively correlated. We are looking at a weekly close about 94.00 in the dollar as confirmation of the bulls being in control. If prices fail to close above 94.00 we would likely see a retracement to recent lows in the high 80.00s. Whichever direction the greenback chooses, the price of oil will likely trend in the other direction. That said, a rip-your-face-off rally in crude oil into the mid-to-low-$70.00s is probably a place the bears want to get involved.