Crude Oil Update

NYMEX Light Crude Futures continuation chart displays a strong reversal pattern that signals a possible end of the decline off 78.40 July 14, 2006 trend high, to 50.12, January 18 low.

Based on its price actions, the impulsive rebound from 50.12 to 64.29 is typical of a reversal formation.

Subsequent pullback is met with a firm rebound from 56.10, March 20 low and that sets up a bullish higher low formation.

Reinforced by MACD bullish divergence coupled with rising momentum indicators, expect an imminent break of the trend-line resistance off 64.15.

Beyond there confirms strength on a potential wave 3 up for 64.15.

Buoyed by rising moving averages, breach of 64.15 accelerates higher towards equality projection at 68.47, preceding a test on 70.66, Sep 1, 2006 high. Loss of 58.00 will instead hint of dips below 56.10, ahead of basing at 53.85.

Violation of 50.12, however, ignites next major fall to 44.60, Feb 2005 low.