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Just like that, oil is almost back to 50; don't be surprised if it hits 60

WTI Crude oil has been in a bullish reversal in August. Basically, the bearish price action in June through July can be considered a completed correction phase, and oil is back into its prevailing uptrend. 

WTI Crude 4H Chart 8/23

(click to enlarge)

The breakout and engulfing candle:
- The bullish trend in August already broke many critical resistance factors. 
- The RSI reflects a market that has strong bullish momentum. 
- Finally, today's strong bullish engulfing candle confirms that bulls are in the market .

WTI Crude Weekly Chart 

(click to enlarge)

Inverted head and shoulders pattern:
- As we can see in the weekly chart, there is an inverted H&S pattern forming.
- The August rally is completing the second shoulder. 
- Perhaps there will be some stickiness around 50 as price enters into the neckline area. 
- But we can see that if the 2016 uptrend extends it could be reversing the sharp slide from 2014 and 2015. 
- With that in mind, the 60 level, around the highs from 2015, could be in sight for the rest of this year.