December Crude Oil: Crude oil rallied for a third straight session on Tuesday to top briefly top the 9400 level. Prices peaked against key Resistance at the 9465 to 9500 range and retreated to close up $1.90 at 9317. The market is in the midst of a confirmed double bottom breakout that has the potential to reach a projected target at 10100 in the coming days and weeks. The near term objective is 9600. On a daily basis, any pullbacks to retest the breakout area around 9100-9000 will offer a buying opportunity to be positioned for the larger move. Multiple settlements below 8950 will negate the Bull Breakout pattern.

Heading into Wednesday's Primary session we are looking at a Bull Bias barring today's DOE report. Look to buy into listed Support levels today with Stops suggested 16 cents below each respective zone. Initial targets are at 9465 R1 to 9500-9525 R2 Resistance zones. Trade above 9525 guns for the near term key target at 9600-9625 R3. Trade north of 9625 paves the way to upper listed targets at 9770-9800 R4 to 9860 R5.

On the downside, sellers can look for short additional failures at 9465 R1, and/or rejection of 9500-9525 R2 Resistance zones, Stops suggested 16 cents above each zone. A third but mild short can be taken against 9600-9625 R3, also Stopping out 16 cents above the range. All shorts should take off most risk against 9317-9300 S1 to 9200-9188 S2 Support targets. Trade below 9188 calls for a corrective sell off of 9110-9100 S3 and potentially to the lower targets at 9050 S4 to 8960-8951 S5.

Daily Chart:

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