Oil reached 9332, double topped there and has come a little lower...One of the important points to know is that even though we have come lower on Oil by a small amount the charts now look as though Oil can trade higher..we are oversold on 60 and 240 min charts and even the daily ones are looking a little oversold...
We have support 9220 to 9204 and as long as we maintain above this support there is no reason we cannot go back
and test yesterdays highs. The thing about double tops is they usually hold, but if we do manage to re-visit this 9332 area there is a good chance we will break through it and trade higher to 9380 possibly even 9445.
Now this all obviously depends on whether or not we can hold onto support at stated support levels. If we fail and
lose 9204 there is going to be a small downside move and we look for 9110/07 to entice prices lower..Here we cover all shorts. Re-instate small longs here as it is quite an important level...and hold longs unless we lose 9095. If this support is lose we see 9005 as a viable downside target.