Oil: The Trend is Your Friend

Editor's Note: Below is a brief note from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look. 

Since my core quantitative signaling #process uses 3 factors (PRICE, VOLUME, and VOLATILITY), when something is signaling Bullish TREND @Hedgeye, that always means that the volatility of that something is Bearish TREND @Hedgeye.

In other words, for Oil (WTI):

1. PRICE – intermediate-term TREND support = $48.18/barrel
2. VOLATILITY – OVX (Oil’s Volatility index) TREND resistance = 30.77

This signal moved to bullish TREND (on price) in the 1^st week of September on #accelerating volume.