Crude oil has been strong, lately, gaining more in the past month than the S&P 500 has this year, see chart below.
United States Oil Vs. S&P 500
Oil's recent rally has it testing what appears to be a very important level on the chart below.
Crude is testing the underside of rising channel (1) and falling channel (2), while testing the 23% Fibonacci retracement level of the 2008 highs/2016 lows at (3).
At this time, this is a resistance test for crude and what it does at (3) should send important short- and long-term messages to about oil and the energy sector.
Crude traders have established a crowded trade, which is very similar to the positioning they had at the 2014 highs. The Power of the Pattern thinks that this is a very important price test for this important global asset.