Is Oil About To Breakout To Higher Prices?
- Posted by TheArmoTrader
- on May 21st, 2014
While inflation still stays fairly muted, oil prices have remained stubbornly high, and this is despite the “Shale Revolution“. But are prices about to go even higher?
Here’s a look at the monthly chart of Brent Crude Oil. You can see a nice symmetrical triangle that has setup throughout the last few years. If this breaks to the upside, we can see a nice pop in Brent to at least 125, and possibly even higher.
And here’s a look at WTI Crude Oil. Similar pattern, but the symmetrical triangle is much more tighter. I’d trust this breakout less because not only is the timeframe shorter, but also the breakout from the 2008 high trendline (not drawn) in mid-2013 failed.
So while this breakout probably wont happen overnight, I’d be watching to see if it caught any momentum over the next 2 months.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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