Crude Oil Rebounds From Key Support as Gap Fill Comes Into Focus

Crude oil has come very nicely to the downside over the last two weeks from the upper side of the very large triangle range back towards the lower side of that same formation, which came down to some very important support levels around the 88 to 90 area. In fact, this zone includes the swing lows from May 06 along with the gap area from mid April.

So far we are also seeing what could be a move out of an ending diagonal, which makes me think that there is a chance the market could attack higher prices again this week with a very important resistance zone around 97 up to 100.40, where we still have that major unfilled gap from last week. As we know, whenever gaps are filled there can often be another important reversal in trend afterwards, and ideally this would happen after an A B C rebound. For that reason, it still looks like there could be a bit more time and price left before this correction is fully completed. Once this rally is over-we will once again expect further weakness.
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Grega