My hourly pattern work in nearby NYMEX crude oil futures indicates that the structure of the decline from the July 7 high at 99.42 into this morning's low at 93.55 exhibits a completed corrective leg. If accurate this also means that oil has initiated a new upleg within a larger recovery rally period off of the June 27 low at 89.61 that projects above 99.42 into the 101-103 target zone.

Only a decline that breaks 93.55 will invalidate my current outlook, which is also bullish for traders of the US Oil Fund ETF (USO).

 

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