Monthly time frame:
- We should consider the current advance as a countertrend rebound
- So far we have a wide range bullish monthly candlestick
- The support is located at 54.20
- Above there is a large "pocket of air" until the 0.382 retracement of the down leg from the June 2014 lower high
Weekly time frame:
- After six consecutive weekly higher highs, with the upper Bollinger at 58.90, oil is now a bit stretched
- Last week potential Spinning Top has not been confirmed yet since so far the small range body could belong to a continuation patter (As long as the gap at 56.14 is not closed)
- If the gap were closed a test of the breakout now support at 54 would be probable
- If the support at 54 does not hold the up-trend from the March low will not be jeopardized as long as the 20 wma which today stands at 51 is not breached
- Weekly oscillators are getting overbought: RSI(5) and Stochastic are now in the cautious zone.
Daily time frame:
- As long as the support at 55.70 is not breached it seems probable that the price action highlighted in the green box looks more like a continuation pattern rather than a distribution one
- Daily oscillators are flashing warnings with the stochastic bearish signal cross and the MACD approaching its signal cross
60 minute time frame:
- If 56.07 holds, Oil could be forming a Triangle with a measured target for the thrust at 60
- If the Triangle pans out once the thrust is set and done odds would favor at least a Fibonacci retracement of the rally from the March low
