The definition of a non trending asset is the fact it does not trend. People get excited about the break out moves, both ways, but they fail to materialize (until they really break out for real, but for that you need catalyst).
When it comes to oil, there are no real catalysts, either way. As we have shown over past months via excellent charts by MPAS, oil lacks interest (second chart).
Less than 24 hours ago, in our note, Oil – is there (short term) blood on the streets?, we suggested Brent was putting in a hammer candle right on supports, closing the gap from late May. Fast forward and oil is up almost 3 USD since then.
Non trending assets should be traded in a mean reverting fashion…until a new catalyst hits the tape, but we have not seen that in oil.