I have stated before that I thought oil would find some resistance near the 200 day moving average at $52.50, and oil made it to $52.60. Now we are having a mid cycle correction. This is why I had not pushed up the stop from $48.....because I did not want to be stopped out of the position from a mid cycle correction.
A retracement such as this does two things. First, it creates a point to set a cycle trend line (green line on chart). This will be an important technical level to follow moving forward.