Oil Threatens to Morph its June Digestion Period into a Top

The $64,000 question now is whether or not all of the action for the last 6-7 weeks is a meaningful top formation, or alternatively, all of the action off of the June 8 high at $51.67 represents a high-level coil-type digestion period ahead of another powerful upleg within the larger advance off of the Feb low at $26.05?

Unless and until the June double-bottom low at $45.83 is violated, my preferred scenario argues for the emergence of another powerful upleg after the current post-Brexit sell-off runs its course.

A sustained break of $45.83 will point Oil to a lower corrective target in the $43.00-$42.00 support zone.