Yesterday's powerful move up through September's bearish
looks to have been technically driven and out of steam. Earlier this morning, oil
trade up to August's high of 49.30 and has since pulled back below fib ext of 49.51. If we see a breakout above 49.64, I'd expect continued upward strength to the 61.8% retracement
at 52. 44
. Otherwise, and more likely, look for oil
to trade back down to the bullish trend
support from August's lows, somewhere below 47.00.
Keep in mind DOE numbers released at 10:30 could be a stimulus to accelerate oil
in either direction.