Its an interesting situation with the oil price now as the chart pattern is one of those unclear situations which is about to become clearer.

See the image attached, it is above its 30 day PLA Dynamical moving average for two days in a row for the first time in 5 months so clearly it is well worth monitoring for a potential direction change.

This type of chart pattern can easily turn into a congestion pattern ( where any small rally is faded by shorters ) and then dive lower again, but also as its setting up a nice NR ( Narrow range ) and break to above 50 indicates a move up is coming. The magnitude of this may be small or large but its looks big enough to trade up to 53 at least based on projections.

There are so many influences of the oil price exist that it is almost impossible to analyses it with fundamentals and this is why technical analysis is such a great method to use.

I remember once Ed Seykota commented on how Warren Buffett wouldnt buy gold as it has no income, no earnings and doesnt make sense to him. Seykota used technicals only and made this great little wisdom.

"Trend followers follow trends and leave the figuring out to the experts"

That was a very very good call Roger, everyone else was saying oil would keep going down, its already over 60