The recovery followed a brief piercing below support at $88.49, the June 22, 2012 low. Many stop orders below this level could have been triggered and thus contribute to the recovery.
The downtrend has not been reversed, which remains steady within a falling channel.
The lower channel line points a potential target between $85 and $86.
Oil may not rise again towards the upper channel line resistance around $90, most likely, it could temporarily hover around $88.49 before plunging again.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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