Today's upside reversal action comes on the heels of a bearish Inventory Report, and from a new low in the vicinity of important, intermediate-term support at $38.90, which represents the 50% retracement level of the entire Feb- Aug advance.
In addition, buying interest emerged at the lower-boundary zone of the June-July down-sloping corrective price channel, classic action into downside channel exhaustion.
Of course, Oil must preserve today's gains, and follow-through to the upside to confirm a significant turn.
The action so far today is very promising technically-- and provides preliminary evidence that Oil has completed the correction of its initial, intermediate-term recovery period.
Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
