Although oil prices are up about $1 per barrel this morning, given the juxtaposition of the Dollar Index pressing against its October low, a holder of long positions in oil and the US Oil Fund ETF (USO) could be disappointed.

I am also mindful of the fact that Friday's weakness can be construed as a successful test of critical support at $76.55, and as long as $76.55 contains any forthcoming weakness, the near-term pattern in oil argues that a three-week Bull Flag should thrust to the upside in the upcoming sessions -- towards a target of $86-$88.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.