A 4H chart view has been presented here which clearly indicates that the Engulfing Bullish Reversal candlestick pattern that appeared at the fibonacci 0.786 support of the earlier rally, still holds good. Further, the immediate wave count indicates that Crude has retraced 62% of its rally from 40.04 to 42.20/30 levels yesterday. Prices are now potentially forming base around 40.50 levels, with bulls poised to extend through the mid 43.00 levels soon enough. For this wave count to hold true, the 40.04 interim lows should remain intact. Immediate support is seen at 40.00, while resistance is seen at 43.30/40 levels. Please make note that, a push through 46.00 levels could be extremely encouraging to bulls and would open up room towards 51.00 and higher levels. RSI still holds above 30 levels.
Long, stop at 40.00, target 43.50 and 45.50.