The new lows made just a week ago is positively diverged, without having new lows on which is a big buy signal.
T/P: 54.11/ 58.77
In my opinion, the Baker Hughes Rig count is nothing more than a distraction of what the market intends to do. I'm in oil in the short term and long term. It does not matter if the rig count decline in speed/velocity or not, the market will always have their excuse of why its going up after; when technicals have long confirmed that.
Shorting 54 for the past 3 months have been SUPER easy for traders on the past few months.
With a relatively good fundamental reason, I'm guessing that a short squeeze might take us up 54 this time.
I think 58 is possible depending on what happen on US market opening tomorrow.