The charts are pointing to a comeback for crude: Trader

The crude comeback is far from over, according to Todd Gordon of TradingAnalysis.com.

WTI crude oil jumped to a seven-week high on Tuesday following bullish supply news from Saudi Arabia and OPEC. The commodity broke above $48 per barrel for the first time since early June.

"The crude oil market looks to have found a low and is ready to start moving up, potentially into the mid-$50s, and even into the $60s," said Todd Gordon, founder of TradingAnalysis.com, on CNBC's "Trading Nation."

Gordon's call on crude comes based on a divergence between momentum and performance. Gordon points out that the last two times the oil-tracking USO ETF has taken a leg down, the market's relative strength index, or RSI, has decreased as well. But when the crude plunged to its year-to-date lows in June, there was less downward momentum on the decline than in a previous drop in May.

"This is a clue that the market is ready to start finding a bottom and it's potentially ready to push out of this channel around the $10 region," Gordon said, referring to a level just above the USO's Tuesday closing price.

As a result, Gordon believes USO can return to $11, where the ETF sat at the start of the year.

In order to cash in from such a move, Gordon is buying the September 9.50-strike call while selling the September 10.50-strike call for a total cost of 38 cents, or $38 per options spread. This means that if USO closes above $10.50 on September 15 expiration, Gordon will make $62 as his maximum reward.

However, if USO closes below $9.50, then Gordon would lose the $38 he paid to make the trade.

USO is still down 16 percent year to date, although it has bounced more than 12 percent from its 2017 lows in June.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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