December WTI crude oil futures posted a monster week a couple of weeks back that kicked off the notion that we had seen the worst of oil’s decline off the late-spring highs. Within the context of a longer-term uptrend the price action the past few months looks more corrective than like a reversal at this juncture.
Even if oil has peaked there is still good evidence that we could see another surge back towards the mid-90s soon. The pullback after the initial surge from the 70s was deep, but stopped around the point it needed to before the decline would start to look like the beginning of a new leg lower. If the low from last week holds, then the right shoulder of an inverse H&S pattern may have been cemented.
