Crude futures have surged through our 2nd tier downtrend line and are now climbing above our near-term uptrend line.  It seems crude has put in a nice bottom, and we could see a retest of February 27 highs shortly.

The OPEC supply cuts are having their desired effect on price, which could be confirmed further by the Crude Oil Inventories release this afternoon.  While the medium-term downtrend is far from over, Crude futures could easily continue their solid near-term rally.

The mid-January to mid-February trading range will provide a true test for the futures. Fundamentally, we find supports of $42.22/bbl, $41.75/bbl, $41.35/bbl, and $40.60/bbl.

The $40/bbl area remains a reliable psychological cushion for the near-term, while the $45/bbl area acts as a psychological barrier.  To the topside, we see resistances of $42.82/bbl, $43.65/bbl, $44.34/bbl, and $44.92/bbl.  Crude futures are currently trading at $42.76/bbl.

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