Closed this short again today with my target reached at 29.70, this afternoon. The prior two builds have served as short-covering signals. Typically, we've seen the trade down in the immediate after-hours of the build release, followed by short-covering on the European open and later throughout the following day. With support holding at 29.50 and two back-to-back >6% declines, I think the possibility for a technical short-covering rally is pretty high. I'll be sitting flat, waiting for directionality for the next move. I'll look to re-enter short below 29.24 and b/w 30.75-31.00.
Obviously, I'm 4hrs late with my response, but that's why I said you need to watch the price action. I am a very big bear on oil, so hard for me to open long positions, would rather express less bearish sentiment with covering shorts and sitting flat. That said, I don't think you can get bullish, until above 31.30. Prior rallies can make a case for 33.00, but again, I would prefer to watch for short entry levels than try to gauge an exit from the long side.