Amidst the OPEC agreements, Trump's inauguration which will likely increase for oil demand and production and the January typical decline in demand, I am still of mind that prices will find higher prices in the first, maybe second quarter of 2017 but will first seek to secure a higher weekly low support price.
I have been looking for a retrace to the 48.36 level, bottom of the upper weekly range; however think it's very possible we also see a retest of the upper .25 of the lower weekly range at approximately 45.9-46.4 level (which has been a strong weekly inflection since April) after which I believe oil prices will continue their rally into mid April at the 56-58 level.
I am currently short and if prices do in fact test the 48.4 level I think a quick swing back up to the 52.4-53 level is likely.
I am not including a specific strategy here as this is intended to point out potential strong pivot levels.
Good trading all!