On Friday crude oil prices dipped a bit below our target for a sub-cycle correction ($55-$56 - Aug. contract chart) and then snapped back up to close around $55.76. Friday was the first day of a long reversal zone that is specifically relevant to crude (July 19-30). In terms of cycle timing, a sub-cycle low was due last week or is due this week, and Friday's low is exactly in our target range so that could easily be the bottom. We could see crude prices rally from here, especially as the "saber-rattling" between the U.S. and Iran heated up significantly at the end of last week. I am going enter a long position in crude oil now. Let's put an initial stop loss for this trade on a close below $54.