But we couldn't break the the support at 45.6$. I think tomorrow we will start to head up again and this time we will break the triangle's upper .
This is not a topping pattern. This looks like a consolidation triangle to me. It's too simple to fall from here. The bull needs to kick hard the bears one more time before a strong decline.
Oil still could rally 2-3 weeks and that would be enough to tag 55-60$ before the intermediate decline.
I believe this is a low risk buy now. If you go long here you could set your stop below 45.40$.
I'M also buying oil in the energy trade.
This time we will break up from the triangle.
We had nice correction in Bear market now oil will deep to paint second shoulder around $38ish at least or revisit lows. I don't see a bullish story here, maybe only very short term. Like Canadian fire or Nigeria rebels (media shut up about it - bearish sign :).
Reserve) decreased by 2.2 million barrels from the previous week. At 524.4 million
barrels, U.S. crude oil inventories are at historically high levels for this time of year.
Total motor gasoline inventories decreased by 0.1 million barrels last week, but are well
above the upper limit of the average range. Finished gasoline inventories decreased while
blending components inventories increased last week. Distillate fuel inventories
decreased by 1.6 million barrels last week but are well above the upper limit of the
average range for this time of year. Propane/propylene inventories rose 2.7 million
barrels last week and are near the upper limit of the average range. Total commercial
petroleum inventories increased by 3.4 million barrels last week.