WTI extends rally to form bullish sign

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I think today's big reversal qualifies as a key reversal day on oil. The rally means WTI is forming a three-bar reversal pattern on its daily time frame. Prices have been supported by further sharper-than-expected drop in US oil stocks, suggesting US driving seasons is well and truly underway. A close above the shaded area on the chart in the next couple of days would further boost the appeal of WTI on the long-side. Longer-term, we will need to see a clean breakout from the converging trend lines for prices to establish a clear directional bias.

By Fawad Razaqzada, market analyst at FOREX.com