Crude oil Bulls take control 22 February 2016

NYMEX crude oil tumbled down significantly in the last few months. However, the fall looks over at least from short-to-medium term perspective. The oil has completed an impulse in its previous fall. It got extended beyond the equality and channel targets. From the low of $27.56, the oil has entered a pull back mode, which is breaking up into lower degree waves. It has a potential to form an expanded flat pattern. The short-term momentum indicator that was showing positive divergence has triggered a bullish crossover. Thus, till the time the swing low of $28.70 holds, the oil can bounce till $34.82-36.50.