Crude settled down 1.5 percent Wednesday after surging to a 10-week high early in the session. Oil is now up 28 percent from its late August low, and one top technician insists the rally is just getting started.
"The big story in the fourth quarter thus far is this surge in energy," Rich Ross said Wednesday on CNBC's "Trading Nation." Energy is the best-performing S&P sector so far this quarter, up more than 10 percent as oil has rallied 7 percent in the same period. "I don't think it's too late to take advantage of this recent surge and play for an extension of this move."
Looking at a chart of the OIH, the ETF that tracks oil service stocks, Ross, head of technical analysis at Evercore ISI, noted a recent completion of a "very bullish double bottom" formation. This is a pattern technical analysts often recognize as a reversal in trend, where a stock or ETF will fall to a low, retest that low and then move higher.