Has Crude Oil Reached Near-Term Downside Exhaustion?

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Today’s upside reversal action comes on the heels of a bearish Inventory Report, and from a new low in the vicinity of important, intermediate-term support at $38.90, which represents the 50% retracement level of the entire Feb- Aug advance.

In addition, buying interest emerged at the lower-boundary zone of the June-July down-sloping corrective price channel, classic action into downside channel exhaustion.

Of course, Oil must preserve today’s gains, and follow-through to the upside to confirm a significant turn.

The action so far today is very promising technically– and provides preliminary evidence that Oil has completed the correction of its initial, intermediate-term recovery period.

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Originally published on MPTrader.com.