Crude oil found our major resistance target early in Monday's session, before selling off to a low of $95.92. The low, although roughly 40 cents from our major support target and retracement point, showed strength to recover and trade back above 97.
So what moved this market Monday? Pure profit taking against $97.77 to $97.90. Although some may believe the pipeline issues through Arkansas had a hand in the recovery, all you have to do is look at the equity market and how it roared back. These markets have traded very technically, so stick to the technicals, keep the trade short, and if it is not working, then get out!
Look for a close above $96.45 to maintain momentum. A close above new highs and above $98 will be very bullish, signaling a likely test up to $100. Only a close below $95.92, and furthermore $95.55, will show signs of a failure.