Crude Oil has been strong of late. Did you realize that Crude Oil has gained more in the past month than the S&P 500 has this year, see chart below.
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The strong rally of late has Crude testing what appears to be a very important level in the chart below-
(Click on image to enlarge)
The strong rally of late has Crude 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.” What Crude does at (3), should send important short and long-term messages to Crude 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 is of the opinion, this is a very important price test for this important global asset.
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