WTI trading at $97.56/bbl

“The double-bottom formation is under way on a 4h chart, as crude oil price’s rally from the 95.00 base, eventually breaking above the strong barrier and near-term congestion top at the 97.00 mark that also marks Fib 61.8% of 98.22/95.00 corrective pullback. A sustained break and close above 97.00 is required to confirm bulls back in play, as completion of double-bottom reversal pattern, would re-focus key barriers at 98.22 (30 January peak) and 98.54 (Fib 61.8% expansion of rally from 84.05, 07 Nov 2012 low).” writes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.

According to Drvenica, “In the interim, barriers lie at 97.45 (Fib 76.4% of 98.22/95.00) and the psychological 98.00 level. The previous barrier at 97.00 now reverts to initial support, ahead of the 96.65/55 mark, a loss of which would sideline near-term bears.” At the time of writing, WTI crude has settled in the region of USD $97.56 Tuesday.