Below is what we discussed just prior to this morning's Inventory Report and even though the report showed slightly more crude supply than expected, the initial knee-jerk reaction to the downside was absorbed well by the market.
Crude prices have pushed higher since the down-spike to $44.61 -- to nearly $46.00, as the price structure challenges key resistance at $46.00/40.
My near- and intermediate-term pattern work indicate strongly that crude should thrust above resistance into a new, powerful recovery upleg-extension off of the August low at $37.75. MJP 9/10/15
T-Minus 5 minutes until the next weekly Oil-Inventory Data, and we see Crude pushing up against initial key resistance at $45.60-$46.20, which if hurdled, and sustained, should trigger upside continuation to $47.00 in route to a revisit of the Aug high at $49.33.
Only a decline that breaks $43.40/20 will wreck the otherwise constructive near-term technical set-up. MJP 9/10/15