Price action has developed alongside the scenario pointed out yesterday.
Although somewhat overextended (again, algos have provided sell signals in shorter term intervals) and working with the idea of crude establishing new highs. First target is $98.30 (early Feb. highs), fowllowed by a much broader a complex value area $99.50-$98.50, which will put close to the magic $100/bbl mark.
However, I don´t think this will be achieved as easy as it sounds/reads. A retracement might be in the cards near this area. The first area I will be looking at is $97.70-$97.40, specifically $97.60, followed by $97.10-$96.60, particulary $96.95, which will make it my line in the sand for holding the current uptrend (at least short term).
Crude has bouced back from $96.60 yesterday and is currently trading at $97.50, as I am writing this post (10:26AM ET), contained between two of the key areas pointed: $97.70 and $96.90.-
I´m working here with the idea that a break into each, will most likely give more direction into it. Thus, is either who will at $97.70, or $96.80.
If buyers take control and overcame $97.70, the upside scenario previously laid out will still be in place. I´ll be looking at $98.05-$97.90 to see if sellers take a stand and further above at $98.30.
Alternatively, a clean breach of $96.80 will keep sellers in control. In that case, I´ll be looking at $96.60, $96.40, $96 and finally $95.70-$95.30