This little break out should be watched and not acted on until confirmed...If you weren't buying OIL (Majors, Indep, Service Comps) since MAR/APR. Do not chase this little one, but if we can break out ~$51 (...and hold), then jump on the bandwagon.
Oil is finally setting up to test the summer highs.
We've got good support below, a couple of easy targets above. Setting up to do goofy things right around election time.
Need to test $48.50, bounce around $51, and if we get some good closes above 51...new floor. If we fail, a nice solid floor ~$45 level.
Chart annotated with ideas to watch
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Still holding to the plan, but we're testing the major inflection point. Hovering right around the supply/demand point. Basically, watch the head lines and market volumes around this level.
A failure to hold/break out above the ~51 level wouldn't be that bad, with a break down to the ~45/46$ level. This would present an excellent point to buy up onother energy related names. However, always be cautious, because macro level events can cause market break up and down quickly below these support/resistance levels. (...but hey, you already know that)