🛢 OIL soars by 2.5%

OIL is advancing for the second day after defending a pivotal support at $39.30. We pointed out in a post yesterday that buyers were able to stop the sell-off at this support and with a help from favorable API report (that showed large draw in US inventories) it has translated into a rally today. We can spot a double bottom formation with the neckline already broken and textbook reach of $43.20. Wednesday is mostly about the FOMC (7pm BST) but OIL traders will be focused on the DOE report on US inventories (3:30pm BST).

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