Oil moved nicely higher last week, closing above the 97.00 key level, which means that the bullish trend is probably confirmed if the three wave retracement from early May high appears complete.

If we are correct, then a rally from 91.20 should unfold impulsively. With that in mind, we expect further strength on oil as we need five waves up from 91.20. Right now we see prices in the middle of a black wave 3 that may be targeting 99.30/100 area this week, while the market trades above 96.40.

Forex Analysis by Gregor Horvat at ForexPros. com