The moment of truth for crude oil's coil-pattern setup is approaching as oil presses toward a test of the Sept. 1 low at $43, which if violated, will morph the June-Sept. corrective coil-type structure into something that will argue for additional weakness, testing the Feb.-Sept. up trend line, now in the vicinity of $42.50.
The $43-$42.50 zone represents very consequential support and must contain any further weakness to avert a full-fledged assault on the important Aug. low at $39.19.
Any strength from the $43-$42.50 area must climb and sustain above $43.70 to trigger preliminary upside reversal signals.
