Crude Oil Tightest 20 Day Range Since August 2014; Breakout Warning

Daily

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-Crude is coiled…really tight. Bollinger band width is the smallest since July 2002! Historically extreme readings tend to register before strong directional moves. Which direction though? If I forget about the record COT position, then the market is set up to rally but perhaps from a triangle in which case the risk is high that a new high proves terminal (end of a move rather than beginning).