All Eyes Remain on the Direction of Oil

In the aftermath of yesterday's upside reversal, the EIA issued a negative report about Oil demand, which put some hurt on the price of W&T Offshore Inc. (WTI), reversing yesterday's strength and pressing price down towards a retest of Monday's pivot low at $44.77-- and thereafter, possibly a test of the Aug-Sept support line, now in the vicinity of $44.35.

My pattern and momentum work argue that the $44.00 area should contain any additional weakness ahead of the emergence of another upleg that will thrust out of the sideways-coil-type pattern that has been carved out since the Aug high at $48.75.

To confirm an end to the coil pattern, Oil now needs to climb back above $46.50.