OUTLOOK: Price Signal Summary - WTI Corrective Bull Cycle Remains In Play

• On the commodity front, a bull cycle in Gold remains in play and the yellow metal continues to trade at its recent highs. Fresh recent gains once again confirm a resumption of the uptrend and maintain the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode position too, highlighting a dominant uptrend. Sights are on the $2962.2, a 2.00 projection of the Nov 14 - Dec 12 - 19 price swing. The first key support to watch is $2867.1, the 20-day EMA.
• In the oil space, a bearish theme in WTI futures remains intact and the move lower last week, and today’s fresh short-term cycle low, reinforces a bear condition. Support at $70.20, the Feb 6 low, has been pierced. A clear break of it would strengthen the downtrend and confirm a breach of the 50-day EMA. This would open $67.75, the Dec 20 ‘24 low. Key short-term resistance has been defined at $74.06, the Feb 3 high. A move above this level would reinstate a bull theme. 

OI data suggests that a mix of net short (SFRZ4) & long (SFRH5 through Z5) setting dominated in the very front end of the SOFR futures strip on Friday.

• Positioning swings then became a little more balanced between net long setting and short cover further out the strip.