West Texas Intermediate Crude Oil has been moving in a tightening triangle against long term resistance around $105. Since October, it has moved through a series of patterns and gotten stronger every time.
The first was a ‘W’ pattern that made a double bottom at $91-92 and then retraced half way following its completion. The next was a Bat Harmonic that retraced over 78.6% of the Bat before reversing. That low, at $97 in March, also made the second point of an ascending triangle the top of which is at $105. It is now back at $105 for the fouth time and looking strong.
A break over $105 will carry a Measured Move higher to $113 with only minor price history at $108 and $111 along the way. With all the congestion and coiling in this range, a move higher could happen quickly as resistance exhausts itself. Are you ready for it?
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