$CL Crude Oil Looking to Test Key 54.50 Level

Crude Oil

Oil in Large Symmetrical Triangle

For nine months, oil has formed a series of two lower highs and one higher low, coiling into the tip of a large symmetrical triangle. I am paying closing attention to the 54.50 level, where it looks to test rising trend line support and an area with significant market memory. Oil will need to resolve higher or lower in the next six weeks, and I will look to position my trades based up how it resolves.

Of concern for bulls is that the recent rally never hit overbought conditions, which is an indication of lackluster strength.

Charts Above Made Using TradingView

About the author

I am the founder of fibonacci.com and an avid trader. I am also the co-founder of Texas Precious Metals, a top US precious metals company. In 2006 I was a contestant on The Apprentice with future president, Donald Trump. I live in Coeur D'Alene, Idaho, with my wife and five children, where I spend my time hiking, charting, and changing diapers.

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