Oil gets interesting as it rises to the highest levels since Christmas

<p>It has been an unpleasant month for oil traders. Crude has risen $4 this month but it's been a rough road getting there with repeated whipsaws intraday and extreme choppiness in trading.</p><p>Headlines about the Red Sea have been faded over and over again despite bullish implications and fears of an OPEC breakdown remain high.</p><p>However when you back it out, the chart starts to look promising. A series of higher lows began on December 13 and oil is now trading at a four-week high. If $76.18 breaks, it will be an eight-week high.</p><p>On the fundamental side, this week's signs of stimulus from China are promising and the US economy continues to impress. A turn in the interest rate cycle is positive for global demand as well.</p><p>Finally, sentiment is terrible in the oil market with hedge fund net shorts at extreme levels. </p><p>Risks remain high for the second half but seasonals are bullish from February so there may be a case to buy a break of the December high.</p>

This article was written by Adam Button at www.forexlive.com.