Crude Breakout; Watch for Support Near 47
Chart Prepared by Jamie Saettele, CMT
-Crude has declined for 10 consecutive weeks. The only other similar streak (since 1987) occurred in 1991 (10 weeks). Following the 10 week decline in 1991, a 3 month base formed that gave way to a 15% rally (from the breakout level…the rally from low to high over 6 months was 30%).
-“Crude has rallied from support…to resistance in 1 day. A break above here targets the median line near 47.”
-“Crude reached the median line and is plunging from that median line. The slope presented above has caught every important turn over the last few months…so follow it!”
-Crude has broken above the median line (used to be resistance). Watch the same line now for support…then look higher again.