Oil prices are showing signs of life with price action up over 2% intraday on Wednesday.
This comes after the commodity fell sharply on Tuesday to a three-month low. WTI crude oil reversed direction after hitting 36.50.
With prices being rejected near this level, the current bullish momentum is pushing prices slightly higher.
However, the declines are not yet complete, until we see higher lows forming.
To the upside, if the current gains continue, we could see oil prices retesting the 38.83 level.
Further gains could be expected only if oil prices manage to close above this level convincingly.