It has been a quiet time for Crude Oil. I have just spotted a possible reversal pattern at the major support level above 47.00. It seems like there is a small rejection candle. The candle formed just above the support level, which gives further reassurance.
One potential scenario that I will be looking at is for the price to bounce off and reach for the 50.00 level. If that happens, then I will be looking for two things:
A) Rejection of the 50.00 level and further slides to the downside
B) Breakout from this level and a potential rise to 54.00.
If the second scenario materializes, this would give us around 12.5% gain. Although quite optimistic, it is a possible scenario and one which could easily turn into a major buying opportunity.
One more last thing- keep an eye for the Crude Oil Inventories at 15:30 GMT, because this could certainly give initial push to the price.