Crude Stopped at Resistance Again – Breakout Fast Approaching
Thus far, front month WTI Crude Oil futures have been unable to breakout above resistance near $54:
A further pullback to the $52 area would still keep the uptrend from the January 29th low intact and it’s quite likely, given that it will be at least the 4th attempt in the past couple of weeks, that the next test of $54 will lead to a breakout. A breakout above the $54 level from the recent ascending triangle has a measured move target of $61.
It is also worth noting that crude oil has a strong tendency to put in a major low during February:
Source: Signal Financial Group