Spot crude collapsed again on Tuesday, hitting a low of $47.28/bbl. Based on a major trend line and pivot support, traders are buying oil here for a helthy bounce. Note the chart below. Oil was trading north of $77/bbl just a few months ago and is now down almost 40%.
This level should yield the first multi-month bounce in crude, which could see a move as high as $60/bbl over this period.
WTI Crude Oil