

It most certainly can stay in the tight trading range, but fundamentals suggest a target price of approx $50 a barrel. Or so I have been consistently reading. However, that pesky problem of the dollar declining has allowed Oil to stay a float. The interesting fact here is that the dollar collapsed (since July) and oil has not made new highs.
The inherent dollar/oil correlation allows us to now beg the question... why?
I do not have an answer, frankly I do not have time to fundamentally research it to the extent that I would. What I do know is that it represents weakness in the oil market, and I would not be surprised to see oil come down to the low 60s (or the 90SMA on the weekly chart).
If this was to happen, that is when I am looking to enter heavy positions in PBR. (That is despite PBR's need for oil to stay above 65 to keep their fields economically viable.)
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