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Crude settled down 1.5 percent Wednesday after surging to a 10-week high early in the session. Oil is now up 28 percent from its late August low, and one top technician insists the rally is
just getting started. "The big story in the fourth quarter thus far is this surge in energy," Rich Ross said Wednesday on CNBC's "Trading Nation." Energy is the
best-performing S&P sector so far this quarter, up more than 10 percent as oil has rallied 7 percent in the same period. "I don't think it's too late to take advantage of
this recent surge and play for an extension of this move." Read More The time has come to buy energy stocks: Strategist Looking at a chart of the OIH, the ETF that tracks oil service
stocks, Ross, head of technical analysis at Evercore ISI, noted a recent completion of a "very bullish double bottom" formation. This is a pattern technical analysts often
recognize as a reversal in trend, where a stock or ETF will fall to a low, retest that low and then move higher. "Admittedly we saw a similar double bottom earlier this year that
produced a nice rally but it ultimately failed," said Ross, whose work was recently recognized by _Institutional Investor_'s 2015 All-America Research Team. "At the very least
[this time] I think we are set up for a tactical move coming off this double bottom." Read More Investors tread carefully despite oil rally For Ross, there are two key levels to watch
on the chart: resistance, which comes in at $32, and then the 200-day moving average around $34. "I think we will retest $32 and a break above that should get us to that moving
average," he said. "We haven't seen the north side of the 200-day for over a year, so clearly a break above $34 is a game changer." That would be an 8 percent move from
the Wednesday afternoon trading price of around $31.40. "I think crude oil and the OIH by extension have what it takes to move higher from here," added Ross. "Take advantage
of this early quarter strength." _Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to