Heating Oil futures reached a critical support level during Monday's tumultuous trading session in the energy sector. The nearby Nymex Heating Oil futures initially sold off heavily in tandem with crude oil, and then rebounded sharply after touching the bottom of a large Rectangle chart pattern.

Monday's swing low is now indicated as a major technical pivot point on the chart, with a new low below that level signaling potential for a major sell-off to a much lower price level. Absent a violation of this pivot point to the downside however, the trading range in the near term is likely to be dominated by price action inside of the Rectangle. A rally above $3.07 is needed in the long term for an upside breakout from this chart pattern.

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