Oil Looks, and is Starting to Act, Like (an Upside) Coiled Spring...

Below is what we discussed in our 9:20 AM ET posting, when Oil was trading at $44.95.

Since then Oil has pivoted to the upside and has popped to a new intraday high of $45.54, in what looks like the start of a new advance from a coiled-spring type of near-term formation that points to a forthcoming challenge of the most recent resistance line created by the Aug 26 and Sept 6 rally peaks, and which cuts across the price axis this afternoon at $45.90.

If Oil manages to claw and sustain above $46.00, it should trigger upside follow-through, perhaps violently, towards $48.50/90 next.

Only a sharp downside reversal that breaches today's low at $44.55 will compromise the timing of the anticipated upside thrust.