Crude Oil - In bullish trend but very short term correction anticipated!

Good for Oil :
1. Signs of Economic Recovery.
2. Industrial Index (with stocks of Industrial companies), is showing strength.
3. Stimulus boost in China close to $600 billion, especially infrastructure based.

Not so good signs for Oil.
1.Demand to drop by 1.5% (DOE estimates).
2. High Inventory Levels.
3. Crude stored at sea in oil tankers to take the benefit of contango, once released will add to inventories.
4. Repayment of debt by banks to US government in the tune of $88 billioon can strengthen the dollar temporarily, inverse correlation of dollar with crude (also seen recently).
5. Techincally, a profit booking required as the spread between the moving averages and crude oil is widening, mean converage is anticipated.
6. Crude oil is technically is in over bought zone (RSI : 74).

To Conclude:
Short term correction is anticipated, but bulish until it doesnt break its 50 day SMA downwards. Once it does, then stay out for sure.
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