Oil has rallied to close the month above the key $33.55 level which was the post GFC low from back in Feb 2009. This has set the monthly chart up for a potential bounce off a bullish-reversal 'Double Bottom' level.
Oil monthly: the monthly candle closed as a bearish candle with a long lower shadow BUT the key point to note is that it closed the month above the key $33.55 level which was the previous low from back during the 2009 GFC era. Thus, whilst the monthly candle was indeed bearish the close above this key support region has set up for a potential bullish-reversal 'Double Bottom'. The pattern on the Oil monthly chart is not a text-book style 'Double Bottom' but it does look significant! I'll be watching for any hold above this $33.55 region for continuation, however, a close and hold back below this support would have me looking for a test of the $20 and even $10 S/R levels:
Double Bottom: I fully concede that the Oil monthly chart pattern does not conform to a text-book style Double Bottom, as shown below, but I still consider the monthly pull back to close above the previous major low from the GFC period to be noteworthy and significant:
Oil weekly: the weekly candle closed a bullish candle:
Oil daily: whilst price action has closed above the $33.55 level the recent 4 month-bear trend line has yet to be convincingly broken:
Oil 4hr: the 4hr MT4 chart shows price action has stalled at this bear trend line which is also the junction of the 61.8% fib of the most recent swing low move, the 4hr 200 EMA and near a daily, weekly and monthly pivot level. This is a most congested zone and the region to watch in coming sessions:
Summary: Oil has closed with a bearish monthly candle and still trading under a recent 4 month bear trend line. However, the close above $33.55 which was the previous major low from the GFC period is significant. I'll be keeping an open mind here but looking for any signs of bullish continuation off this support region.