WTI crude up 3%
Oil up $1.02 to $33.19 in quick move after erasing earlier declines.
The rule of thumb is that a retest of a double-top means it wasn't a top at all, and that it will break.
A break higher might slice right through the late January highs and take a look at the $38 level. If so, I think that would be the spot to sell it, in size.
A NYT article on small oil companies is doing the rounds. It makes it sound like many are on the brink of bankruptcy. That kind of washout is what's needed for oil to bottom.
"Moran Oil Enterprises is losing $5 on every one of the 205 barrels it produces every day, forcing it to borrow $30,000 this month to meet a payroll that includes 24 employees and contractors.
One partner at RKR Exploration is so distressed by debt payments he has taken to bringing his garbage to the office to save the $25-a-month fee at home.
And the Columbus Oil Company, losing more than $10,000 a month, has given up its rented postage stamp machine."
