Light Crude Oil Breakout Imminent

Senator Lindsey Graham unleashed a series of tweets Saturday morning after learning of drone attacks on Saudi oil refineries.

I've yet to hear whether the Saudis will blame/have blamed Iran for the attacks and whether war will eventually be declared.
 

No doubt, this will affect oil prices when futures trading begins later on Sunday.

Light Crude Oil futures closed on Friday at 54.84. As shown on the following monthly chart of CL, it's sitting just below the apex (at 56.00) of a large triangle and is about to breakout of this formation soon.

Saturday's news from Saudi Arabia may be the catalyst that catapults CL out of this triangle and to new highs for 2019 and beyond.
 


From the Volume Profile shown on the right-hand side of the following monthly chart of CL, major support sits at 50.00, which happens to be the Volume Profile's POC (point of control) on this timeframe.

Near-term resistance sits at 60.00. A breakout and hold above that could send price as high as 80.00, or even higher to 100.00, as others are now speculating.
 


On the bottom section of the following monthly chart of CL, the ratio of Oil to its Volatility Index is shown in histogram format.

Watch for it to break and hold above 2.00, and, subsequently, 3.00 on this ratio, as well as an upside crossover of the 5 and 8 MAs, to confirm the sustainability of such a price surge.
 

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Candy Matheson 4 months ago Author's comment

N.B. Check out my Blog for important UPDATES I've added to this article...StrawberryBlondesMarketSummary.com

BreakingBad News 4 months ago Member's comment

Thanks.

Candy Matheson 4 months ago Author's comment

You're welcome...please check back periodically, as more updates are added as news emerges.