Technical Factors Could Lead Crude Oil To $70 Per Barrel

From Chris Kimble: Crude Oil has created a series of lower highs and lower lows since the peak in 2008. Since the lows of 14-months ago, Crude has created a series of higher lows and potentially creating a bullish ascending triangle pattern.

This pattern two-thirds of the time, leads to an upside breakout. Below looks at a chart Crude Oil, with a focus on the potential ascending triangle pattern.

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For the read to be correct, (Bullish Ascending Triangle), resistance at the $55 level has to be taken out. At this time the $55 level comes into play as stiff resistance.

This ascending triangle pattern allows one to do a measured move calculation. The height of the ascending triangle is measured at (1). If a neckline breakout takes place, the measured move suggests that Crude could rally to the $70 zone at (2).

A breakout has NOT been proven at this time. The key to this pattern; Resistance must be taken out! If it does breakout, Crude could well attract buyers.

The United States Oil Fund LP ETF (NYSE:USO) was trading at $11.10 per share on Monday afternoon, up $0.14 (+1.28%). Year-to-date, USO has declined -5.29%, versus a 5.28% rise in the benchmark S&P 500 index during the same period.

USO currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #56 of 126 ETFs in the Commodity ETFs category.


This article is brought to you courtesy of Kimble Charting Solutions.

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