I just gave my first exam of the semester, in a class called ‘Money and Banking.’ There are about 60 students enrolled and I collected 57 exams. So over the next few days i’ll find out if the other 3 dropped the class or if they want to make up the exam.
That situation happens in the market all the time. And it is happening with crude oil right now, which has been rising since a Christmas Eve bottom. Oil stalled sooner than equities, though, pausing at the beginning of February and then pulling back. But this week it has been rising back to retest the prior resistance area.
In other words, it is looking for a make up exam on whether it can make a higher high.
U.S. Crude Oil
This time it is not my decision whether to allow a retest. All of us collectively decide. The price action suggests a positive response at this point. The RSI is rising off of the mid line with the MACD about to cross up and positive. The Bollinger Bands® are squeezed, which is often a precursor to a big move. Perhaps resolution one way or the other is coming very soon. Look for a move over 56 to confirm a successful move to the upside with more to follow.