Crude Consolidating on Support
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“Since mid-Jan, crude has been trading around the line that extends off of the 1998 and 2001 lows. Several key weekly reversals (in Jan and Mar) along with the shape of trading since mid-Jan indicate a possible bullish base. A couple more months of sideways trading may be in store with 54 as resistance.”
-“A break above 54 (daily close) would indicate an important behavior change.” Crude has broken above 54, shifting focus to the upper parallel, which intersects a resistance line at the end of the month near 67. Price needs to stay above 55.69 for the breakout to remain valid.
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