Since last Thursday's pullback low at $62.75, oil prices have reversed with a vengeance, and nearly have recovered the entire correction from $67.75. My work argues that the upmove off of $62.75 represents a new upleg in the ongoing larger bull move in crude, which projects to a next target zone of $$68.50/90, and then to $70-$71. Only a break below $64.65 will compromise the still bullish technical picture.

MJP 08/24/05

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.