Slow Down, Bulls: Four Signs This Oil Rally May Not Have Legs
- Crude is sitting in overbought territory, a sell signal
- U.S. crude output seen accelerating as prices hold above $50
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The rally that pushed crude to a two-year high is showing signs of losing strength, and we may soon see a reversal in prices. Here’s what to look out for in the oil market in months to come.
A closely watched technical marker is indicating crude might make a break for the downside. West Texas Intermediate crude’s 14-day relative strength index lingered above 70 on Tuesday, signaling the commodity is overbought. Prices have rallied about 5 percent so far this month.