Crude oil today is trying to break a resistance level at $58.00, on the day chart the lagging line needs to close above the Ichimoku cloud to signal further upward price action, a close tonight within the cloud may signal a small reversal back down towards $50.00. The DMI is crossed over to a bull signal and the ADX is at a healthy level that shows gaining momentum at 40.
The weekly chart shows how the price level reached a considerable distance with ADX showing oversold for several weeks before the correction began 4 weeks ago. It looks like there is still room as the 1st resistance would be at the base line at $62.425, a break of that would put the next resistance at the bottom side of the Ichimoku cloud. I don’t see a major change in trend, inventories came out higher than expected yesterday, forecast was at 2.9 million, but actually added a total of 5.3 million, doesn’t look like there are any signs of supply levels changing.