Crude Oil breakout would be good for it and stocks, says Joe Friday
Crude Oil (USO) remains one of the most important, if not THE most important commodity on the planet. A big test in play right now for this important asset.
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Crude Oil over the past few years has traded inside of channel (A). It hit the top of the channel in 2014 and couldn’t break out. Soon after failing to breakout, it started on a historic decline, inside of the pink shaded channel.
Crude hit the bottom of channel (A) early this year, where it created two monthly reversal patterns (bullish wicks) at (1). Since hitting support, Crude has rallied strongly and we were on board for part of the rally.
Now Crude is facing falling channel resistance at (2) above.
Joe Friday Just The Facts…If Crude Oil can breakout at (2), Crude should do well. We suspect that if Crude can breakout, stocks would like the price action!
Courtesy of philstockworld.com