A funny thing happened to the crude bulls on their way off "the bottom" around the long term uptrend line from 1998 low (White dash line)...
They forgot to CLOSE the daily candle above the prior swing high of 51.73.
To be clear, all timeframes 4-hours and smaller are directionally bullish with the 9am-1pm est candle that closed above 51.73 today (Tuesday, Feb. 3rd), and pullbacks will likely see buyers.
The daily and above timeframes still have bear hope.
The $55-59.50 wedge from Mid-December through Dec. 26 offers the next resistance above, should profit-takers and new shorts not slam /cl lower after EIA on Wednesday.
With API this afternoon showing another large build (6.1 million barrels), expect shenanigans as usual on Wednesday.
A little dollar rally would help crude bears' cause as well.
I think last Thursday & Friday's spikes were driven most by:
1. /rb & /ho options expiry
2. End of month profit-taking/loss covering
3. Technically driven push on back of higher highs & lows on timeframes 1-hour and lower