Crude Oil Pivots to the Upside from Key-Support Zone, and Exhibits Evidence that its August Pullback is Over

An acute oversold condition that pressed Oil right to the Fibonacci 62% retracement/support zone ($42.85) of the entire Feb advance, some friendly comments by Putin about supporting an OPEC output agreement, and a soft Jobs Report (less upward pressure on U.S. rates) have combined to goose Crude prices from yesterday's low at $43.00 to this morning's high at $44.4.

Amid very thin holiday trading, and ahead of the Weekly Baker-Hughes Rig Count due out at 1 PM ET, today's early volatility could expand and extend into the afternoon session.

That said, however, the form of the rally off of yesterday's low at $43.00 so far exhibits a bullish profile, which suggests strongly that the entire correction off of the Aug 18 high at $48.75 ended on Sept 1 at $43.00.

The ability of Oil to sustain above $43.70/50 support will strengthen my conviction about $43.00 representing a significant pullback low.

A close above $44.33 today will mean that nearby Oil again is above trading its 200-Day EMA.