FX:US Crude Oil futures jumped after the Fourth of July Holiday weekend
US Crude Oil futures jumped after the Fourth of July Holiday weekend, punching through the top of an Ascending Triangle chart pattern in heavy buying. The rally concludes a lengthy period of mostly sideways, range-bound trading over the last several days, and made a convincing break of key resistance previously holding the market below $96 per barrel.
The breakout from the flat-topped Ascending Triangle chart pattern, shown here on the longer term 240-minute candlestick chart, sets crude oil on track for a retest of the $100 per barrel mark, which has proven to be significant resistance since falling through that level several weeks ago.
The current projected price target for this breakout points nearby crude oil futures towards a minimum price of $98.67 per barrel to complete the pattern, with the higher end of the forecast coming in at $101.43, which would place the market above the $100 resistance level and set up for a potential continuation of gains.
A close back inside the Ascending Triangle would negate the breakout and mark a key failure in the short term, but the momentum in Tuesday’s session is encouraging for upside follow-through to the forecast target area.
