$USO $UWT $CL_F on week six looks like range low holding = starting to scale in for a move back into the range pic.twitter.com/Cg8qUhR1wc
— Cousin_Vinny (@Couzin_Vinny) February 14, 2020
Today’s Chart of the Day was shared on Twitter by @Couzin_Vinny. It’s a weekly candlestick chart of WTI Crude Oil futures over the past ~3 years. Things are finally starting to look bullish for Crude Oil after having a rough start to the year. The commodity closed lower for five consecutive weeks, dropping over 20% in that time. As you can see from the blue horizontal lines, it has been stuck in a well-defined range between $65 and $50 per barrel for over a year. Price looked like it was going to continue lower after it broke below the bottom end of that range last week. However, price moved back above that key $50 level this week, forming a failed breakdown. Failed breakdowns like this tend to lead to sharp moves higher. As long as Crude Oil remains above that $50 level, the risk is to the upside. For more on this development, check out this article from Tom Bruni of All Star Charts.